How long would $1 million last in retirement?

Asked by: Maurine Becker  |  Last update: February 25, 2025
Score: 4.6/5 (72 votes)

For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years.

How long can you live on $1 million in retirement?

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

How long will $1 million last in retirement by state?

If you retire in California, $1 million in savings will last 12 years, eight months, five days. Annual groceries cost: $4,979. Annual housing cost: $13,691. Annual utilities cost: $3,944.

Is $1 million enough for a comfortable retirement?

Bottom line. “It is most definitely possible to retire on $1 million,” says Delgado. “However, doing so depends on each individual.” Stretching that retirement money may involve some changes, such as moving out of high-cost cities in favor of moderately priced areas or downsizing your home.

How many retirees have 1 million dollars?

Just 16% of retirees say they have more than $1 million saved, including all personal savings and assets, according to the recent CNBC Your Money retirement survey conducted with SurveyMonkey. In fact, among those currently saving for retirement, 57% say the amount they're hoping to save is less than $1 million.

Retire at 60 with $1M? What To Expect

22 related questions found

What is considered wealthy in retirement?

Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.

Does net worth include home?

Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).

Can I live off the interest of 1 million dollars?

Key Takeaways

Yes, it's possible to retire on $1 million today. In fact, with careful planning and a solid investment strategy, you could possibly live off the returns from a $1 million nest egg.

How much money do most people retire with?

What are the average and median retirement savings? The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.

How much monthly income will 1 million generate?

At the current Treasury rate of 4.3%, a $1 million portfolio would generate about $43,000 per year, or roughly $3,500 per month. With your Social Security payments that would generate about $6,000, again enough to live comfortably in most places.

How many people have $3000000 in savings?

Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.

What is the best state to retire in 2024?

Best Places to Retire in 2024
  1. Florida. It's no secret why Florida continues to be one of the best states to retire in 2024. ...
  2. North Carolina. ...
  3. Pennsylvania. ...
  4. Delaware. ...
  5. Alabama. ...
  6. South Carolina. ...
  7. Georgia. ...
  8. Maryland.

Can 1 million dollars last a lifetime?

Many people consider it a benchmark for a comfortable retirement, but it's not necessarily enough for everyone. In fact, as the cost of living rises, many retirees will need far more than $1 million to live out their golden years comfortably.

How much monthly interest on 1 million dollars?

As you can see, there are many ways to invest $1 million and earn interest. However, most of these investments are currently paying between 4–5% interest. So, if you want to live off the interest from your portfolio, you'll need to spend less than $5,000 per month.

How much will a 1 million dollar annuity pay?

At age 60, a $1 million annuity could pay around $62,000 annually, but delaying payouts until age 65 could increase the yearly payout to approximately $90,000. You may find drawbacks such as limited access to funds, penalties for early withdrawal, fees and inflation reducing the purchasing power of your payments.

How many people have $1,000,000 in savings?

So, let's break it down – how many Americans have a net worth of $1 million or more? According to the 2022 Survey of Consumer Finances by the Federal Reserve, only about 12% of U.S. households have a net worth over $1 million. This means that the vast majority – 88% – are nowhere near that level.

Where is the safest place to put $1 million dollars?

The safest place to put $1 million dollars would be in a combination of insured bank accounts and conservative investments, such as bonds and CDs, to ensure a balance of liquidity and stability.

How much money do you need in the bank to live off interest?

But other costs, like travel and medical expenses, can go up in retirement. As a rule of thumb, experts recommend replacing between 70% and 90% of your pre-retirement income. So, if your pre-retirement income was $80,000, you would want your assets to generate between $56,000 and $72,000 in retirement.

Can I retire at 62 with $400,000 in 401k?

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

What is the $1000 a month rule for retirement?

The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.

How many people have 500k in 401k?

Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.

What net worth is considered rich?

Yahoo Finance

In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.

Do you count a car in net worth?

"For estate tax purposes all assets should be listed on the net worth statement, including tangible personal property like clothing, jewelry, furniture, cars, collections and art.

What is the most valuable asset to own?

Your home is likely your most valuable asset, and the value that you assign to it will have a great impact on your net worth calculation. A qualified real estate professional can give you an estimate of your home's value, or you can research online real estate aggregators such as Trulia or Zillow.