How long will $1 million last in retirement?

How long $1 million lasts in retirement depends on your annual spending and investment returns. Using the 4% rule, $1 million supports $40,000/year in withdrawals indefinitely (historically lasting 30+ years). If you spend $50,000/year, $1 million lasts approximately 20–25 years assuming a balanced portfolio. If you spend $70,000/year, it could run out in 12–15 years. Adding Social Security income significantly extends savings — if you receive $24,000/year in Social Security, you only need $16,000/year from savings to meet a $40,000 spending goal, making $1 million effectively inexhaustible.

What is the 4% rule for retirement?

The 4% rule states that you can withdraw 4% of your initial retirement portfolio per year (adjusted annually for inflation) and have a very high probability (historically 95%+) of your money lasting 30 years. The rule comes from the 1994 Trinity Study, which analyzed withdrawal rates against historical stock and bond returns. Example: $800,000 × 4% = $32,000/year in withdrawals. The 4% rule has been debated in recent years — some researchers recommend 3–3.5% for 40+ year retirements given current market conditions.

How much do I need to retire at 65?

Financial planners commonly target 10–12x your final salary, or enough to generate 70–80% of pre-retirement income. For someone earning $75,000/year, that suggests a target of $750,000–$900,000. However, the right amount depends on your Social Security income, pension, spending plans, and health. Using the 4% rule, to generate $40,000/year from savings requires $1 million. To generate $60,000/year requires $1.5 million. To cover full expenses without Social Security at $80,000/year requires $2 million.

What is sequence of returns risk in retirement?

Sequence of returns risk is the danger that a series of poor investment returns early in retirement (while you're making withdrawals) can permanently deplete your portfolio — even if long-term average returns are fine. If you retire in a year the market falls 30% and withdraw 5% of your portfolio, you've sold more shares at a low price and have fewer shares to recover when the market rebounds. To reduce sequence risk: keep 1–2 years of expenses in cash, reduce withdrawal rate in down markets, use a bucket strategy, or delay Social Security to maximize guaranteed income.

Can I retire on Social Security alone?

It's very difficult. The average Social Security retirement benefit is $1,976/month ($23,712/year) in 2026 — well below the poverty line for most cost-of-living areas. The maximum Social Security benefit is $3,822/month ($45,864/year) at full retirement age. For most retirees, Social Security provides a foundation but is not sufficient to cover all living expenses, especially healthcare. The SSA itself says Social Security is designed to replace about 40% of pre-retirement income for average earners.

How Long Will Your Retirement Savings Last? 2026 Calculator Guide

Your retirement savings will last longer or shorter depending on three variables: how much you spend annually, how your investments perform, and what guaranteed income you receive (Social Security, pension). Using the 4% rule, $1 million supports $40,000/year in inflation-adjusted withdrawals for 30+ years historically. Here’s how to calculate your personal number.

Quick answer: Divide your annual retirement spending by 0.04 to find the nest egg needed for a 30-year retirement. Spending $50,000/year → need $1.25 million. Spending $70,000/year → need $1.75 million. Social Security income reduces the amount you need to draw from savings.

How Long Different Retirement Account Sizes Last

The table below shows estimated years savings last at different annual withdrawal amounts (assumes balanced 60/40 portfolio, historical average returns):

Savings	$30K/year	$40K/year	$50K/year	$60K/year	$80K/year
$500,000	30+ years	~20 years	~15 years	~12 years	~9 years
$750,000	30+ years	30+ years	~25 years	~18 years	~13 years
$1,000,000	30+ years	30+ years	30+ years	~27 years	~18 years
$1,500,000	30+ years	30+ years	30+ years	30+ years	30+ years
$2,000,000	30+ years	30+ years	30+ years	30+ years	30+ years

“30+ years” means historically this withdrawal rate has sustained the portfolio for 30 years with 90%+ success probability. These are historical approximations and are not guaranteed.

The 4% Rule — The Most Widely Used Guideline

The 4% rule (Bengen Rule) states: withdraw no more than 4% of your initial portfolio value per year, adjusted annually for inflation.

Formula: $$\text{Maximum Annual Withdrawal} = \text{Portfolio Value} \times 4%$$ $$\text{Portfolio Needed} = \frac{\text{Annual Spending}}{4%}$$

Annual Spending Goal	Portfolio Needed (4% Rule)
$25,000/year	$625,000
$35,000/year	$875,000
$40,000/year	$1,000,000
$50,000/year	$1,250,000
$60,000/year	$1,500,000
$75,000/year	$1,875,000
$100,000/year	$2,500,000

Worked example: Maria retires at 65 with $1.2 million and spends $48,000/year ($4,000/month). Her withdrawal rate is 4% ($48,000 ÷ $1,200,000). She also receives $22,000/year in Social Security. Her actual portfolio withdrawal need is $26,000/year — a 2.2% withdrawal rate — making her money effectively inexhaustible.

Social Security is inflation-adjusted guaranteed income for life — it dramatically reduces how much savings you need.

Annual Social Security	If You Want $60K/year Lifestyle	Savings Withdrawal	Savings Needed
$0	$60,000/year from savings	4% →	$1,500,000
$15,000/year	$45,000/year from savings	4% →	$1,125,000
$24,000/year	$36,000/year from savings	4% →	$900,000
$36,000/year	$24,000/year from savings	4% →	$600,000

Takeaway: Delaying Social Security from 62 to 70 increases your monthly benefit by approximately 76% (8% more per year from full retirement age to 70). For many people, this is the single most impactful retirement planning decision.

Retirement Savings by Age — Are You on Track?

Fidelity and other major financial institutions publish savings benchmarks by age:

Age	Savings Benchmark (Multiple of Salary)	Example (Earning $70,000/yr)
30	1x salary	$70,000
40	3x salary	$210,000
50	6x salary	$420,000
55	7x salary	$490,000
60	8x salary	$560,000
67 (retirement)	10x salary	$700,000

These are guidelines — individual situations vary significantly based on expected Social Security, lifestyle goals, and local cost of living.

What Happens If You Run Out of Savings?

If retirement savings are depleted, income sources remaining:

Social Security — continues for life regardless of savings
Pension (if any) — lifetime income stream
Part-time work — many retirees earn supplemental income
Home equity — through downsizing or a reverse mortgage (for homeowners 62+)
Family support or government assistance (Medicaid, SSI)

The real risk of running out of savings is heavy dependence on Social Security alone — $23,712/year on average — which is insufficient for most people’s lifestyles in retirement.

Key Strategies to Make Savings Last Longer

1. Delay Social Security to age 70 Each year you delay past full retirement age (67 for those born after 1960), benefits increase 8%. Delaying from 67 to 70 increases your monthly benefit by 24% — permanently.

2. Use the Bucket Strategy

Bucket 1: 1–2 years of expenses in cash/savings (no market risk)
Bucket 2: 3–10 years expenses in bonds and balanced funds
Bucket 3: Long-term growth in stocks — not touched for 10+ years

This prevents being forced to sell stocks during a market downturn.

3. Reduce Withdrawal Rate in Down Markets Even reducing withdrawals by 10% in a bad market year significantly improves portfolio survival. This is called “dynamic withdrawals” or the “guardrails strategy.”

4. Keep Retirement Income Tax-Efficient Withdraw from accounts in the right order: taxable brokerage first → Traditional IRA → Roth IRA last. This delays Roth distributions (tax-free growth) as long as possible and manages your taxable income to keep Medicare premiums lower.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy