How long will $1 million last in retirement?

How long $1 million lasts in retirement depends mostly on how much you take out each year: about $40,000 a year, raised with inflation, has historically lasted at least 30 years, while $70,000 a year could run out in well under 20. Social Security, a pension and the markets in your first few years of retirement then stretch or shrink that.

Below is a simple table, what changes the answer, and a free calculator to run your own numbers.

This is general education, not financial advice. The tables use made-up, steady returns to show the shape of the math. Real markets go up and down, and past results don't promise future ones.

The simple table

Here's roughly how many years $1 million covers if you take the same amount each year (raised with inflation), under two made-up assumptions: no growth after inflation, and a steady 3% a year after inflation. Taxes and fees are ignored.

| Yearly withdrawal | Withdrawal rate | No growth after inflation | 3% growth after inflation | |---|---|---|---| | $40,000 | 4% | about 25 years | about 44 years | | $50,000 | 5% | about 20 years | about 29 years | | $60,000 | 6% | about 16 years | about 22 years | | $70,000 | 7% | about 14 years | about 18 years |

Two things jump out. First, cutting what you take by $10,000 a year can add years, sometimes decades. Second, the classic 4% rule sits where it does because, in the historical studies it came from, a 4% start lasted at least 30 years even through bad stretches. The 4% rule and its limits explains the research and why early retirees often plan on a little less.

What Social Security and a pension change

$1 million rarely has to do the whole job. Maria is made up. She retires at 62 and spends $60,000 a year. If she waits until 67 to claim Social Security and it pays her $24,000 a year then, her savings only need to cover $36,000 a year from 67 on, a 3.6% rate on $1 million.

Before 67, she'd take the full $60,000 from savings for five years. That "bridge" is where much of the risk sits, so many people plan it on its own: a few years of cash or bonds set aside for it, part-time income, or claiming at a different age. Social Security at 62, 67 or 70 and the Social Security timing calculator help with that choice. Your own estimate is at ssa.gov/myaccount.

Why the start date matters

Two people can retire with the same $1 million and the same spending, a year apart, and end up in very different places. If markets fall hard in your first few years, you're selling investments while they're down to pay the bills, and that money isn't there when markets recover.

That's why people look at conditions when they retire, and plan a cushion when the backdrop looks risky. uFIRE's daily Retirement Timing Meter reads six public signals tied to that risk. Retiring in a bear market covers what people do if a downturn arrives right at the start.

Ways people make $1 million last longer

• Start a little lower. Taking 3.5% instead of 4% gives a lot more room for a 40- or 50-year retirement.
• Use guardrails. Spend a bit less after bad market years and a bit more after good ones.
• Keep a cash or bond buffer for the first couple of years. The bucket strategy is one way to set that up.
• Earn a little. Each $1,000 a year of spending covered by part-time work is about $25,000 less you need from savings at a 4% rate. See Coast FIRE vs Barista FIRE.
• Mind the order you spend accounts in and the taxes on each. Which account do you spend first? walks through it.

Common questions

How long will $1 million last if I withdraw $40,000 a year?

At $40,000 a year raised with inflation, a 4% start, $1 million has historically lasted at least 30 years in the studies behind the 4% rule. With no growth at all after inflation, it would last about 25 years. With a steady 3% after inflation, it would last over 40.

How long will $1 million last with Social Security?

Usually much longer, because Social Security covers part of your spending. If you spend $60,000 a year and Social Security pays $24,000, your savings only need to cover $36,000, which is a 3.6% rate on $1 million. The years before Social Security starts are the ones to plan carefully.

Can I retire at 60 with $1 million?

Many people can, depending on what they spend. At 60 the main things to plan for are health insurance until Medicare at 65, the years before Social Security, and a retirement that could last 30 years or more. Starting at around 4% or a little less gives more room.

How much can I withdraw from $1 million a year?

The classic starting point is 4%, or $40,000 in the first year, raised with inflation after that. People retiring early, or wanting extra cushion, often use 3.5%. People with a pension or willing to cut back in bad years sometimes start higher.

What happens if the market crashes right after I retire?

A big drop early on does the most damage, because you're selling investments while prices are low. People soften it with a cash or bond buffer, spending a little less until markets recover, or earning some income for a while.

Is $1 million enough to retire?

For many people, yes, especially with Social Security, a paid-off home or a pension. It depends far more on your spending than on the headline number. How much do you need to retire? shows how to find your own.

Next step

Put in your own savings, spending and years, and see how long your money lasts, including what a rough first few years would do.

Try the withdrawal rate explorer →