How Long Will $1 Million Last in Retirement?

One million dollars is the retirement number many Americans aim for. How long it lasts depends almost entirely on one thing: how much you take out each year.

The answer, by withdrawal amount

We ran $1,000,000 through our how long will my money last calculator, assuming a 6% yearly return, 3% inflation, and withdrawals that rise with inflation:

Yearly withdrawal	Withdrawal rate	How long it lasts
$30,000	3%	More than 100 years
$40,000	4%	About 43 years
$50,000	5%	About 29 years
$60,000	6%	About 22 years
$80,000	8%	About 15 years
$100,000	10%	About 12 years

All amounts are in today’s dollars. Withdrawing $40,000 means $40,000 of today’s buying power every year.

Why the curve is so steep

Going from $40,000 to $50,000 a year is a 25% raise in spending, but it cuts the life of the money by a third. Each extra dollar you withdraw is a dollar that stops compounding. The rule of thumb: keep your withdrawal rate near 4% if the money must last 30 years or more.

Living off the growth

There’s a level at which you never touch your real principal: when your withdrawal is no larger than what the portfolio earns after inflation. At a 6% return and 3% inflation, that’s about $28,300 a year on $1 million. Below that line, the money lasts indefinitely.

What can change the answer

Sequence of returns. The table assumes the same return every year. A crash in your first few years of retirement hurts far more than the same crash later. Test it with the Monte Carlo calculator.
Fees. A 1% fee on $1 million is $10,000 a year.
Taxes. Withdrawals from traditional accounts are taxable income. Include the tax in your withdrawal amount.
Social Security. Every dollar of benefits is a dollar you don’t need to withdraw. A $24,000 benefit turns a $60,000 budget into a $36,000 withdrawal, which lasts far longer.

Make your own table

Put in your balance, your planned withdrawal and your expected return in the how long will my money last calculator. Or turn the question around with the retirement withdrawal calculator: choose how many years you need, and it tells you what you can spend.

$1 million isn’t a fixed lifespan. At $40,000 a year it can carry a 65-year-old past 100; at $80,000 it runs out around 80.

Run your own numbers

Your money lasts to age 87

22 years, 3 months of $60,000 withdrawals, adjusted for inflation every year.

Withdrawal rate: 6%
Lasts forever at or below: $28,302
Runs out after: 22 years, 3 months

What would change your result

To make it last to age 95, keep withdrawals at or below $49,017 a year.
Withdraw 10% less ($54,000) and it lasts to 90.
If Social Security or a pension covers $10,000 of that spending, it lasts to 94.

What-ifs worked out from your own numbers. Not personal financial advice.

Portfolio

Using a 2.91% real return. All amounts in today's dollars.

Year-by-year table

Age	Portfolio	Withdrawn so far
65	$1,000,000	$0
66	$967,379	$60,000
67	$933,807	$120,000
68	$899,258	$180,000
69	$863,702	$240,000
70	$827,111	$300,000
71	$789,454	$360,000
72	$750,700	$420,000
73	$710,818	$480,000
74	$669,774	$540,000
75	$627,534	$600,000
76	$584,064	$660,000
77	$539,328	$720,000
78	$493,289	$780,000
79	$445,909	$840,000
80	$397,149	$900,000
81	$346,969	$960,000
82	$295,328	$1,020,000
83	$242,182	$1,080,000
84	$187,488	$1,140,000
85	$131,201	$1,200,000
86	$73,275	$1,260,000
87	$13,662	$1,320,000
88	$0	$1,333,662

Quick answers

How long will $1 million last if I withdraw $50,000 a year?

About 29 years, assuming a 6% return and 3% inflation, with the $50,000 rising with inflation each year. A weaker run of returns early on could shorten that.

Can I live off the interest of $1 million?

At a 6% return and 3% inflation, withdrawals up to about $28,300 a year, rising with inflation, never shrink the real balance. Above that, you slowly spend down principal.

Is $1 million enough to retire at 65?

For many households, yes. At 4%, $1 million supports $40,000 a year in today's dollars; add Social Security and a couple can often cover $65,000 to $80,000 of spending.