How Long Will $1 Million Last in Retirement?

July 1, 2026 · 6 min read

A million dollars sounds like more than enough to retire on. But "how long will $1 million last?" doesn't have a single answer — it can stretch anywhere from about 15 years to forever, depending on a handful of things that have almost nothing to do with the million itself. Here's what actually decides it.

The short answer

Spend $40,000 a year from a $1 million portfolio that keeps earning a reasonable return, and it can last roughly 30 years — the logic behind the well-known "4% rule." Spend $80,000 a year and the same million might be gone in 15. Add Social Security and a pension on top, and it might never run out at all. Same number, wildly different outcomes.

What actually determines how long it lasts

• How much you spend. By far the biggest lever — the gap between your spending and your other income is what the million has to fill.
• Your other income. Social Security, a pension, part-time work, or an annuity all shrink how much you pull from savings — often dramatically.
• Investment returns. A million earning 5% throws off about $50,000 a year before you touch the principal. Earning 1% is a very different story.
• Inflation. At 3% inflation, what costs $40,000 today costs about $72,000 in 20 years — your withdrawals have to grow just to keep up.
• How long you live. The money has to last as long as you do, and that's the one number nobody knows in advance.

Three rough scenarios

Picture a $1 million portfolio earning about 5% a year, with 3% inflation:

• Spend $40,000/yr, no other income → lasts roughly 30 years.
• Spend $70,000/yr, no other income → lasts roughly 17–18 years.
• Spend $70,000/yr, but $40,000 comes from Social Security → you draw only ~$30,000 from savings, and the million can last 30+ years or never run out.

Look at that third case: the same spending and the same million — but adding Social Security turns "runs out in 17 years" into "lasts indefinitely." That's why the size of your nest egg alone tells you almost nothing.

Why “$1 million” is the wrong question

A round number like $1 million feels like a finish line, but it isn't the thing that matters. What matters is the monthly gap between your income and your expenses — because that gap is what your savings have to cover, month after month. A retiree with $1 million and a small gap is in far better shape than one with $2 million and a large one.

How to find your actual answer

Rules of thumb are a starting point, but your real answer depends on your specific mix — your Social Security, your pension, your spending, your accounts, and how those shift over the years (the mortgage ends, healthcare rises, one spouse's benefit starts before the other's). The only way to really know is to project it month by month.

That's what Retirement Forecast is built to do: enter your numbers and it shows the exact month your money would run out — or that it comfortably lasts — and lets you test changes until you're confident. Seeing your run-out date is free.

This article is general education, not financial, investment, or tax advice. Projections are estimates that depend on your inputs and assumptions; consult a qualified professional about your own situation.