Can You Retire with $1 Million?
$1 million is a common retirement milestone, but whether it is enough depends on your spending, lifestyle, and timeline.
What $1 million can provide
A common rule of thumb is the 4 percent rule. With $1 million, that means about $40,000 per year in withdrawals before taxes.
Is $1 million enough to retire?
For some people, $40,000 per year may cover basic living expenses, especially in lower cost areas. For others, it may not fully replace their income.
How long will $1 million last?
How long your money lasts depends on your withdrawal rate, market performance, and inflation. You can explore this in more detail using the longevity calculator or by reviewing how long $1 million may last.
When $1 million works best
This level of savings works best when combined with Social Security, a pension, or reduced spending. Delaying retirement can also improve your outcome.
Big risks to consider
Even with $1 million, risks like inflation, healthcare costs, and market downturns can impact long-term sustainability. Planning for flexibility is important.
Ways to stretch $1 million further
Strategies include lowering withdrawals, adjusting your spending over time, and maintaining some form of income in early retirement.
Use the calculators
Test different scenarios using the tools on this site. Adjust your withdrawal rate, return assumptions, and time horizon to see how outcomes change.