How Long Will $1 Million Last in Retirement?

One million dollars is a lot of money for most people. You might even think that’s plenty of money for retirement. But how long will $1 million last in retirement? The answer can depend on your retirement age, life expectancy, and lifestyle. For some people, $1 million may be more than enough for a comfortable retirement but for others, it might not be enough.

A financial advisor can help you figure out your target retirement savings number.

Can You Retire With $1 Million?

Financial experts have long recommended $1 million as a benchmark number to hit when it comes to retirement savings. While it’s certainly possible for someone to retire with $1 million, there are many factors to consider. Here are some of the potential roadblocks that could make retiring on $1 million challenging.

Inflation

Inflation can be a threat to your retirement savings because it shrinks your purchasing power. When inflation is low, that’s less concerning but when prices spike, that means your money doesn’t go as far. If inflation remains above the 2% benchmark that the Federal Reserve aims for, your savings will deplete faster than anticipated.

Healthcare Costs

Healthcare can become one of your largest expenses as you age. A 2025 report from Fidelity Investments estimated that a 65-year-old retiring in 2025 can expect to spend $172,500 on healthcare throughout retirement. ¹ While Medicare helps reduce the financial burden, it does not cover everything. Co-pays, prescription drugs, dental care, vision and hearing expenses add up, and if you require long-term care, the costs can climb well beyond that estimate. Without a plan for these expenses, healthcare alone could drain a significant portion of your retirement savings.

Social Security

Social Security benefits can supplement $1 million in retirement savings, but there are growing questions about the program’s future. If Congress takes no action, the Social Security trust fund is projected to become insolvent by 2033, which could trigger an automatic benefit cut of roughly 24% for all recipients, according to the Committee for a Responsible Federal Budget. ² Even without insolvency, the program’s annual cost of living increase does not always keep pace with inflation, which can erode your purchasing power during periods when prices rise faster than benefits adjust. Relying too heavily on Social Security without accounting for these risks can leave a gap in your retirement income that your savings may need to fill.

How Long Will $1 Million Last in Retirement?

There is no single answer to this question as it depends largely on your personal situation. There are several important factors to consider that can determine whether $1 million is enough. Take a look to see if you might need to set your goal a little higher.

Retirement Lifestyle

How you plan to live in retirement can be a significant predictor of how long your money will last. If you plan to practice financial minimalism and live a pared-down lifestyle, then your money should stretch further. On the other hand, traveling full-time or an expensive purchase like a boat or RV drains your resources quickly.

Retirement Age and Life Expectancy

Your retirement age and how long you expect to live in retirement matter. These numbers help you figure out how much of your savings to draw down annually. If you retire at 60 and expect to live to 90, for example, you’ll need to plan your withdrawals carefully.

Health

Staying healthy in retirement can be a boon financially if you’re spending less of your savings on medical care. On the other hand, if you have a chronic condition that requires regular treatment, develop a terminal illness or require long-term nursing care, a larger share of savings may go to expenses not covered by Medicare. Or you may have to resort to spending down assets to qualify for Medicaid, which can pay for long-term care.

Risk Tolerance and Risk Capacity

Risk tolerance refers to how much risk you are comfortable taking with your investments. Risk capacity is different. It measures your ability to absorb investment losses without jeopardizing your long-term financial goals. Having high risk capacity gives you the most flexibility because you can invest based on whatever level of risk you are comfortable with, knowing that your financial plan can withstand short-term losses.

The bigger problem arises when risk capacity is low. If you cannot afford to absorb significant investment losses, your reasonable options narrow to safer holdings like CDs, individual bonds or money market funds. These protect your principal but produce lower returns, which means your $1 million may not grow fast enough to keep pace with inflation or support decades of withdrawals. Understanding where you stand on both risk tolerance and risk capacity can help you and your advisor build a portfolio that balances what you are willing to accept with what your financial situation can actually handle.

Cost of Living

Where you live in retirement can be just as important as how much you have saved. Your cost of living directly affects how fast you spend down your savings, and the difference between locations is dramatic. A million dollars in a city like Los Angeles, where housing, taxes, healthcare and everyday expenses run well above the national average, will not stretch nearly as far as the same amount in a lower-cost area of the Midwest or rural South. Housing alone can account for a gap of $20,000 or more per year between a high-cost metro and a modest small town. Retirees who are flexible about where they live have a real lever to pull. Relocating to a less expensive area or even a state with no income tax can add years to the life of a $1 million portfolio without changing your spending habits at all.

Timing of Social Security

Social Security benefits can help $1 million last longer in retirement. How much you receive from Social Security can depend on your earnings during your working years and the age at which you begin taking benefits. Taking Social Security at age 62 can reduce your benefits by up to 30% while delaying them until age 70 can increase the amount you receive by up to 32%. ³

In 2026, the maximum monthly benefit that can be claimed at age 62 is $2,969, while the most a person can receive if they wait until age 70 is $5,181. ⁴

How Long Will $1 Million Last in Retirement Examples

It’s hard to put an exact number on how long $1 million will last in retirement. Everyone’s situation is different. Running some different scenarios through a retirement calculator can help you estimate how long your money should last.

• Example #1: You have $1 million in savings earning a 6% annual return. If you are in the 24% tax bracket and need $5,000 per month in after-tax income, your actual withdrawal needs to be roughly $6,579 per month to cover the tax bill on each distribution. At that withdrawal rate, your savings could last approximately 24 years.
• Example #2: If your $1 million in savings earns a 5% annual return and you need $5,000 per month after taxes, you would need to withdraw roughly $6,579 per month to net that amount in the 24% bracket. At that rate, your savings would last approximately 20 years.
• Example #3: You earn a 7% annual return, but you are in the 32% tax bracket. To net $6,000 a month in spending money, you would need to withdraw roughly $8,824 per month to cover the taxes on each distribution. At that pace, your $1 million would last just under 16 years.

These examples don’t take inflation into account or annual increases in your withdrawal rate. They also don’t consider any changes to your federal tax bracket. However, they can give you a basic idea of how long $1 million will last in retirement.

How to Save $1 Million for Retirement

Saving $1 million for retirement can take time and the sooner you get started, the better. These tips can help you get closer to the $1 million mark.

1. Maximize employer match: If you have a 401(k), contribute enough to get the full employer matching contribution if offered.
2. Increase contributions over time: Consider increasing your contribution rate annually to coincide with any pay raises you receive.
3. Open a Roth IRA: If you’re eligible, contribute to a Roth IRA. This allows you to make tax-free withdrawals in retirement while avoiding required minimum distributions.
4. Utilize an HSA: Max out your health savings account if you have access to one through a high-deductible health plan.
5. Save unexpected income: Tax refunds or other financial windfalls can be put directly toward your retirement savings.
6. Diversify investments: Invest in a taxable account, keeping your risk tolerance and risk capacity in mind.
7. Monitor account fees: Review retirement and investment accounts annually to see how much you’re paying in fees and where you might be able to lower those costs.
8. Consider tax-efficient investments: Tax-advantaged investments such as municipal bonds are exempt from federal taxes and should only be held in taxable brokerage accounts, where the tax exemption provides actual value.
9. Hedge against inflation: Choose investments that are less susceptible to inflation, such as real estate or Treasury Inflation-Protected Securities (TIPS).

Those are just some of the strategies you might use to save $1 million or more for retirement. Talking to a financial advisor can help you fine-tune your plan and maximize your savings during your working years.

How to Make $1 Million Last in Retirement

There is no single answer to this question because it depends on your personal situation. Several factors determine whether $1 million is enough or whether you need to aim higher. One of the biggest is whether you have a pension. State and local government employees, teachers, professors and other public sector workers who receive a pension have a guaranteed income stream that reduces how much they need to draw from savings. All else being equal, a retiree with a pension can make $1 million last significantly longer than someone who depends entirely on their portfolio and Social Security for income. Your spending, your health, where you live, your tax situation and how your savings are invested all play a role as well.

Start With a Withdrawal Rate

The most widely referenced starting point for retirement withdrawals is the 4% rule, which suggests withdrawing 4% of your portfolio in the first year of retirement and adjusting that amount annually for inflation. On a $1 million portfolio, that produces $40,000 in the first year. Research behind the rule suggested this rate had a high probability of sustaining a 30-year retirement across a range of historical market conditions.

The 4% rule is a starting point, not a guarantee. A retirement that begins during a period of poor market returns, extends well beyond 30 years or involves higher-than-expected expenses may require a more conservative initial rate. Some financial planners now suggest starting closer to 3% to 3.5% to account for lower expected returns and longer life expectancies. Running your own numbers through a retirement calculator using your specific withdrawal needs, tax situation and expected return gives you a more accurate picture than any rule of thumb.

Sequence Your Withdrawals to Reduce Taxes

The order in which you draw from different account types affects both how long your money lasts and how much goes to taxes over the course of retirement. A common approach is to draw from taxable accounts first, allowing tax-deferred and Roth accounts to continue growing. Tax-deferred accounts like traditional IRAs and 401(k)s come next, and Roth accounts last since qualified withdrawals are tax-free and Roth IRAs have no required minimum distributions during the owner’s lifetime.

That sequence is not universally optimal. In years when your taxable income is low, drawing from a traditional IRA rather than a taxable account can be advantageous if it keeps you in a lower bracket. A financial advisor can model the tax impact of different withdrawal sequences across your specific accounts and income sources to identify the approach that minimizes lifetime taxes rather than just the current year’s bill.

Use Roth Conversions in Early Retirement

The years between retirement and age 73, when required minimum distributions begin, often represent the lowest-income period of a retiree’s life. That window is an opportunity to convert portions of a traditional IRA or 401(k) to a Roth account, paying income tax on the converted amount now at a potentially lower rate than what future RMDs would cost.

Gradual Roth conversions over several years reduce the balance subject to future RMDs, which lowers mandatory taxable income in later retirement and extends the tax-free Roth balance available for later withdrawals. The amount to convert each year depends on your current income, your tax bracket boundaries and how much you can convert without triggering a higher Medicare premium surcharge or pushing other income into a higher bracket.

Manage the Portfolio for Longevity, Not Just Safety

A common instinct in retirement is to shift heavily toward conservative investments to protect the balance. That instinct makes sense for money needed in the near term but can work against a retiree who needs the portfolio to last 25 or 30 years. An investment portfolio entirely made of bonds or cash may preserve principal in the short term but lose purchasing power to inflation over a long retirement.

A bucket approach divides retirement savings into three pools based on time horizon. The first bucket holds one to two years of living expenses in cash or short-term bonds, covering near-term withdrawals without requiring asset sales during a market downturn. The second bucket holds three to ten years of expenses in a moderate allocation of bonds and dividend-paying stocks, replenishing the first bucket over time. The third bucket holds the remainder in a growth-oriented allocation, invested for the long term with the expectation that it will not be touched for a decade or more. This structure allows the long-term money to keep growing while the near-term money remains stable and accessible.

Protect Against the Risks That Can Drain Savings Fastest

Healthcare and long-term care are the two expenses most likely to disrupt an otherwise sound withdrawal plan. A single extended care need can cost more in a year than most retirees budget for across several years of regular expenses. Planning for that possibility before it arrives, whether through long-term care insurance, a dedicated savings reserve or a hybrid life insurance product with long-term care benefits, reduces the likelihood that a health event forces a disruptive change to the withdrawal strategy at the worst possible time.

Delaying Social Security, if circumstances allow, reduces the share of retirement income that must come from the portfolio. Each year of delay past full retirement age increases the benefit by approximately 8%, and that higher base amount applies to every future cost-of-living adjustment. For a retiree who can cover expenses from the portfolio in early retirement, delaying Social Security to 70 effectively purchases a higher guaranteed income stream for later years when the portfolio may need to do less work.

Bottom Line

How long will $1 million last in retirement? The answer depends entirely on your circumstances. Your spending, your health, where you live, when you claim Social Security, whether you have a pension and how your investments perform all play a role. Understanding how these factors work together can help you plan more effectively and avoid running short.

“How long $1 million will last in your retirement is entirely based on your situation. Access to a pension, good investment returns, and low healthcare costs can cause your $1 million to last longer than a scenario where you take Social Security early, or experience years of poor investment returns,” said Matthew Hofacre, CFP, EA.

Matthew Hofacre, Certified Financial Planner™ (CFP®), Enrolled Agent (EA), provided the quote used in this article. Please note that Matthew is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and is not intended to provide specific advice or recommendations.

Retirement Planning Tips

• Mapping out a retirement strategy can take time and you may benefit from having a helping hand. A financial advisor can review your financial situation and goals, then work with you to develop a plan for reaching them. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Purchasing a long-term care insurance policy can help you hold on to more of your savings should you need nursing care later in life. You might also consider a hybrid policy that combines long-term care coverage with life insurance. If you remain healthy and don’t need to use long-term care benefits, the life insurance portion of your policy will still pay out a death benefit to your beneficiaries.

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