Is $1 million enough to retire? See how long it lasts, monthly income at 4%, and whether it meets your needs.
A $1 million retirement portfolio is a milestone many savers target. Using the 4% rule, $1M generates approximately $40,000/year ($3,333/month) in sustainable income, adjusted for inflation, for 30+ years.
Add average Social Security of ~$1,900/month and your combined income could reach $5,200/month — enough for a modest but comfortable retirement in most of the US, particularly in lower cost-of-living areas.
However, $1M may not be enough if you retire early (before 65), live in a high-cost city, or have high healthcare costs. Use the calculator above to model your specific spending and see if $1M covers your needs.
The math: $1,000,000 × 4% = $40,000/year = $3,333/month. Add Social Security and any pension for your total retirement income picture.
For many Americans retiring at 65 with Social Security income, $1M provides a comfortable lifestyle in low-to-mid cost areas. It generates ~$40,000/year at 4%, plus Social Security.
At $40,000/year withdrawals (4%), $1M invested in a diversified portfolio has historically lasted 30+ years. At $60,000/year withdrawals (6%), it lasts closer to 20 years.
At a 4% withdrawal rate: $3,333/month. At 5%: $4,167/month. At 3.5%: $2,917/month. Plus Social Security and any other income sources.