For most people, $10 million is enough to retire at 60. It offers a wide enough margin for living expenses and unexpected costs. How quickly you spend that money depends on your lifestyle, returns, inflation and healthcare costs. Managing your portfolio strategically and withdrawing conservatively can help your savings last well into retirement.

Ask a financial advisor how to structure your retirement plan to accommodate your future plans.

How Much Income Can $10 Million Generate?

The income generated from a $10 million retirement portfolio depends largely on how the funds are invested. Different strategies offer varying levels of risk, return and portfolio longevity.

Low-Risk Approach (2% to 4% Annual Return)

A portfolio composed mainly of bonds, CDs or money market funds might yield around 2% to 4% annually. That provides $200,000 to $300,000 per year in income. While this approach prioritizes capital preservation, inflation can erode purchasing power over time. At a 3% withdrawal rate, the portfolio could theoretically last indefinitely, assuming steady returns.

Moderate-Risk Portfolio (4% to 5% Annual Return)

A diversified portfolio with a mix of stocks and bonds might target returns of 4% to 5%. This would generate $400,000 to $500,000 in annual income. Let’s assume the 4% withdrawal rate commonly cited in retirement planning. A $10 million portfolio is likely to last 30 years or more, although actual longevity depends on market performance and spending habits.

Aggressive Growth Strategy (6% to 7% Annual Return)

An equity-heavy portfolio aiming for 6% to 7% returns could produce $600,000 to $700,000 per year. While this increases income potential, the higher volatility means greater exposure to market downturns. Sustaining this strategy in retirement requires flexibility, especially in years with negative returns.

Annuities (Guaranteed Income)

Using part of the $10 million to buy an annuity could generate fixed lifetime income. A $2 million immediate annuity for a 60-year-old might yield $130,000 to $140,000 annually, depending on the provider and terms. This can supplement other investments and help smooth cash flow throughout retirement.

Planning for Expenses

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Retiring with $10 million at age 60 offers financial flexibility, but it is still important to understand how spending can evolve over time. Your earlier years of retirement often involve higher discretionary spending. Meanwhile, later years may see rising healthcare costs and potential long-term care needs.

Lifestyle and Discretionary Spending

Many retirees spend more in earlier years on travel, hobbies, home upgrades or helping adult children. Spending $300,000 to $400,000 per year is generally sustainable for a $10 million portfolio, particularly with a balanced asset mix. However, large one-time purchases or ongoing support for family can accelerate portfolio drawdown.

Healthcare Costs

Healthcare is a long-term expense that increases with age.

According to Fidelity’s 2024 estimate, a 65-year-old couple that retired in 2024 can expect to spend about $330,000 on healthcare throughout retirement. This figure includes premiums, deductibles and out-of-pocket costs but excludes long-term care. Those retiring at 60 will likely face additional expenses in the five years before Medicare eligibility begins. You may need to explore private insurance or ACA marketplace plans during that gap.

Long-Term Care

Long-term care can be one of the most significant and unpredictable retirement costs. Based on Genworth’s 2024 data, the national median annual cost for a private room in a nursing home is $10,646 per month or $127,752 per year. Depending on the duration and level of care needed, these costs can quickly add up.

Some retirees choose to self-insure using part of their portfolio, while others explore long-term care insurance or hybrid life insurance policies with care riders.

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Taxes and Inflation

Taxes can significantly impact a retirement portfolio, especially for those generating $400,000 or more in annual income. Much of that income may come from capital gains, dividends or tax-deferred accounts like IRAs and 401(k)s, all of which have different tax treatments.

Retirees typically pay either 15% or 20% in taxes on long-term capital gains and qualified dividends, with the exact rate based on their income bracket. The IRS taxes withdrawals from traditional retirement accounts as ordinary income. These withdrawals could push retirees into the 32% or 35% tax bracket at that income level.

At higher income thresholds, retirees may also be subject to the 3.8% Net Investment Income Tax (NIIT). This applies to investment earnings once modified adjusted gross income rises above $250,000 for married couples filing jointly. Additionally, Medicare surcharges (IRMAA) can raise Part B and Part D premiums once income passes certain levels, further eroding after-tax income.

Accounting for Inflation

Inflation presents another layer of complexity. Even with a $10 million portfolio, rising prices reduce purchasing power over time.

If inflation averages 3%, today’s $400,000 in spending would need to grow to over $720,000 in 20 years to keep pace. This requires a growth-oriented investment strategy, even in retirement, to keep pace with inflation without drawing down principal too quickly.

To manage these risks, many retirees use tax-efficient withdrawal strategies, such as drawing from taxable accounts first or using Roth conversions to smooth future tax liabilities. Accounting for inflation and adjusting withdrawals over time can also help protect long-term spending power.

Planning Your Estate

A $10 million portfolio requires a structured estate plan to manage taxes, transfers and long-term wishes. Retirees should start with a will and revocable living trust to direct how assets are distributed and avoid probate. Naming beneficiaries on retirement accounts and insurance policies can streamline transfers and reduce delays.

With a $10 million nest egg, estate and gift taxes may not seem like immediate concerns, but they can still come into play—especially if the portfolio grows significantly over time.

The federal estate tax exemption is $13.99 million per person in 2025, meaning a single retiree would avoid federal estate tax. However, this exemption is scheduled to drop by about half in 2026. It could potentially bring more estates into taxable territory unless laws change.

Several states levy estate or inheritance taxes that kick in well below the federal exemption. Retirees should consider how residency, future asset growth and tax law changes might affect the estate’s eventual tax liability.

Bottom Line

Two couples in their 60s sit at a picnic table together at a food fair in Hawaii.

Retiring at 60 with $10 million offers flexibility, but it still calls for smart planning. How long the money lasts—and how comfortably it supports future goals—depends on factors like your mix of investments, spending habits, tax strategy and healthcare decisions. With careful attention to these moving parts, retirees can shape a financial path that supports both day-to-day living and longer-term priorities.

Retirement Planning Tips

Consider spreading your retirement savings across different account types—traditional IRAs and 401(k)s for tax-deferred growth, Roth IRAs for tax-free withdrawals and regular brokerage accounts for added flexibility. Having money in multiple “tax buckets” gives you more options when it comes time to withdraw funds, letting you better manage your tax bill as your income or tax rules shift over time.
Consider working with a financial advisor who specializes in comprehensive wealth management. 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.