Find out if $1 million is enough for retirement in 2026. How long it lasts, monthly income, and the 4% rule explained.
Assumes constant return rate. Does not account for inflation, taxes, or Social Security. For illustrative purposes only.
A $1 million retirement portfolio is a major milestone, but whether it's "enough" depends entirely on your spending needs, retirement age, and other income sources. Using the 4% rule, $1 million supports $40,000/year in inflation-adjusted spending. Combined with average Social Security of $24,000/year, total income is $64,000 — comfortable in many markets, tight in high cost-of-living areas.
Historical research (the Trinity Study) found that a 60/40 portfolio with a 4% initial withdrawal has a 95%+ success rate over 30 years. At 3.5%, success rates are even higher. For someone retiring at 65 with $1 million, this means $35,000/year from savings alone, supplemented by Social Security and any other income.
The risk: retiring early with $1 million and a 35+ year horizon. Early retirees using 4% withdrawal face higher sequence-of-returns risk and inflation risk. A 2.5–3% withdrawal rate is safer for 35-year retirements, which means $1 million supports only $25,000–$30,000/year from savings — necessitating either Social Security or additional income sources.
Location matters enormously. $1 million can fund a very comfortable retirement in low cost-of-living states like Mississippi, Alabama, or Kansas. In San Francisco, New York City, or Hawaii, it may barely cover 15–20 years of expenses. Use local cost-of-living data to stress-test your plan.
Consider tax diversification. Having $1 million split between a traditional IRA ($600K) and Roth IRA ($400K) gives you flexibility to manage taxable income in retirement. You can draw from the Roth tax-free in high-income years to avoid pushing into higher tax brackets or increasing Medicare premiums.
At a 4% annual withdrawal ($40,000/year, adjusted for inflation), a $1 million portfolio invested in a 60/40 stock/bond mix has historically lasted 30+ years in most market scenarios. At higher withdrawal rates of 5–6%, the risk of running out before 25 years increases substantially.
Using the 4% rule: $40,000/year = $3,333/month. A more conservative 3.5% gives $35,000/year = $2,917/month. Added to average Social Security of ~$2,000/month, total monthly income is roughly $4,900–$5,300 — before taxes.
At 62 with a potentially 30-year retirement, $1 million is workable but not lavish. You can take Social Security at 62 (reduced benefit ~$1,600/month) plus $40,000/year from savings for total income around $59,000/year. Waiting until 70 for Social Security and living off savings from 62–70 puts more pressure on the portfolio initially but yields higher lifetime income.