Can you retire on 1 million [Updated April 2024] (2024)

You plan to retire at 60 and place your life expectancy at 90, so you’ll need an income to carry you through 30 years. With $1 million, assuming your money doesn’t increase or decrease too dramatically in value during those 30 years, you’ll be guaranteed a minimum of $33,333 annually or $2,778 monthly.

For many Americans, $2,778 per month would be more than enough at a time in life when monthly outgoings are at their lowest and large loans such as mortgages are fully paid off, especially with possible supplementary income from sources like Social Security on the table. On average, in 2023, Social Security is ​​$1,782 per person per month. These figures would combine for a total of $4,650 pre-tax.

This figure could be reduced considerably if you planned to retire early, leaving the working world behind at 50 or 55 to extend the length of your peaceful and relaxing golden years. You could also struggle to make the $2,778 figure work in the first place if:

  • You have a particularly lavish retirement lifestyle in mind.

  • You have a lot of ongoing financial commitments you still want to meet as a retiree.

  • You’re planning to support a dependent as a retiree.

How long will $1 million last in retirement?

As mentioned above, the odds are in your favor that retiring on a million dollars will be possible and viable. But the odds are only the odds, and you’ll find that things can change a lot once you start adding variables for retirement age and lifestyle.

Let’s run through some examples to give you an idea of what we mean:

Planned retirement agePlanned retirement lifestyleEstimated monthly income requirementNecessary total retirement income amount (assuming a life expectancy of 90)
45Frugal, minimalistic$1,000$540,000
Moderate, balanced$2,000$1,080,000
Lavish, expensive$4,000$2,160,000
50Frugal, minimalistic$1,000$480,000
Moderate, balanced$2,000$960,000
Lavish, expensive$4,000$1,920,000
55Frugal, minimalistic$1,000$420,000
Moderate, balanced$2,000$840,000
Lavish, expensive$4,000$1,680,000
60Frugal, minimalistic$1,000$360,000
Moderate, balanced$2,000$720,000
Lavish, expensive$4,000$1,440,000
65Frugal, minimalistic$1,000$300,000
Moderate, balanced$2,000$600,000
Lavish, expensive$4,000$1,200,000

Consulting with an experienced financial advisor can provide tailored advice to assess your retirement needs based on your situation. Match with a financial advisor below.

How much does the average US citizen save for retirement?

When most people start retirement planning and assessing the amount they’ll need as a retiree, they look to their peers. They ask, “What is the average retirement saving amount in the US?” and aim for this.

According to data from the Federal Reserve’s ​2019 Survey of Consumer Finances, this is how things break down:

Age groupAverage retirement savings balance (among those with any retirement savings)
Under 35s$30,170

In actuality, the average only tells you so much. You should pay more attention to ​​your own financial incomings, outgoings and demands. Whether a million dollars is above the average amount saved is irrelevant, to a degree, as it doesn’t determine how much you ideally need to save.

How much tax will I pay if I retire with $1 million?

Retirement income taxes will affect you if you have a million dollars or more earmarked for this era of your life. How much you’ll pay will depend on how much you earn overall and how your income comes to you. To summarize:

  • Most income is taxed according to the federal government’s nine marginal rates.

  • Over the long term, investment income is taxed differently and treated as capital gains, which might allow you to pay a lower rate than you would according to the usual marginal federal tax rates.

  • Some retirement accounts, such as 401(k)s and traditional IRAs, are pre-tax, so when you receive your retirement distributions, you’re taxed on them.

  • Other retirement accounts like the Roth IRA are after-tax, meaning you pay tax when you initially contribute, and distributions as a retiree reach you tax-free.

  • If you receive Social Security benefits, up to 85% of these could be taxed depending on your overall annual income and filing status.

Can you retire at 50 with a million dollars?

Yes, retiring on a million dollars at 50 years old is possible. Looking back at our calculations, it would likely allow you a monthly income of over $2,000. Additional income sources like Social Security could further increase this amount.

It could also be boosted according to your needs by proper investment strategies. Strategies that allow your money to earn money, even once you’re out of the working world. Passive investment income is an incredibly helpful wealth retention strategy available when you have a million dollars in savings.

Can I retire at 65 with 1 million dollars?

Retiring at 65 with $1 million is entirely possible.

Suppose you need your retirement savings to last for 15 years. Using this figure, your $1 million would provide you with just over $66,000 annually. Should you need it to last a bit longer, say 25 years, you will have $40,000 a year to play with.

These calculations do not factor in any additional income from other sources or the amount of taxes you will have to pay.

If it’s not something you’ve considered, it’s highly recommended you speak with a financial advisor. They can help you make your money go further and set you up for a comfortable and financially secure retirement.

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How can I increase my savings and protect my $1 million?

Luckily, your existing savings of $1 million puts you in a great place to grow your wealth and increase that total with relative ease – especially if you have some time to play with between now and your hopeful retirement age. You can do this by:

  • Developing a collaborative relationship with a qualified financial advisor – once your savings are reaching the millions, it’s vital that you take your money seriously. That you put steps in place to both retain and increase the wealth you’ve accumulated. Steps like connecting with an advisor who can meet your needs.

  • Considering higher-risk, higher-return investments – if you’re already an investor but tend to stick to medium-risk or low-risk investments with matched returns, a financial advisor could help you earmark some of your money to branch out. A high-risk investment that pays off can make a huge financial difference.

  • Keeping a watchful eye on your expenditures – this is especially important if those around you have a lavish lifestyle, and it’s easy to spend money without thinking about it. Spend as necessary, of course, but don’t spend for the sake of it when you don’t want to. Hold that money back for the future.

The bottom line

You should be incredibly proud of your efforts if you’ve already saved a million dollars to fund your retirement.

You should know how long it might last in various scenarios and be aware of anything else you might need to do to set yourself up for happiness and stability in your golden years.

If you want further financial advice about retirement, you can connect with an SEC-regulated ​​advisor via Unbiased. Simply answer our five-minute survey, and an advisor perfectly suited to meet your needs will be in touch. Get started here.

Can you retire on 1 million [Updated April 2024] (2024)


Can you retire on 1 million [Updated April 2024]? ›

Yes, retiring on a million dollars at 50 years old is possible. Looking back at our calculations, it would likely allow you a monthly income of over $2,000. Additional income sources like Social Security could further increase this amount.

How many Americans have $1000000 in retirement savings? ›

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

How long will $1 million last in retirement by state? ›

For instance, in California, an average retiree requires approximately $100,965 to lead a comfortable life, whereas in Kansas, that figure is just above $63,000. Retirees in certain states can enjoy between 15 and 16 years of life if they save one million dollars.

What is the new magic number for retirement? ›

The new magic number for retirement is $1.46 million.

What is the average 401k balance for a 65 year old? ›


Can you live off interest of $1 million dollars? ›

Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.

What percentage of Americans have a net worth in excess of $1000000? ›

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

What is the best state to retire in 2024? ›

Out of all 50 states, the Sunshine State topped WalletHub's list of best states to retire, but with Florida's considerably high cost of living -- some might wonder why it's still the favorite among retirees. Get South Florida local news, weather forecasts and entertainment stories to your inbox.

How many people have $3,000,000 in savings in usa? ›

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

How long will 1 million last in retirement with Social Security? ›

$1 million lasted the least amount of time in Hawaii at just 10.3 years, followed by Massachusetts at 12.8 years. California took third at 13.8 years. Funds lasted the longest in Mississippi at 22.7 years, with Oklahoma close behind at 22.1 years.

How much money do you need to retire in 2024? ›

Experts say the average individual will need $1.2 to $1.5 million to maintain their lifestyle with 80% of their annual pre-retirement income. The average American retires with $200,000 to $250,000 between various retirement savings accounts—just a measly one million dollars shy of the recommended amount.

What is a good number to retire on? ›

10x your annual salary by 67

To fund an “above average” retirement lifestyle—where you spend 55% of your preretirement income—Fidelity recommends having 12 times your income saved at age 67, which is the normal Social Security retirement age.

What is the magic age for retirement? ›

Waiting until the full retirement age of 66 or 67 is ideal, especially with people living longer than ever."

Can I retire at 62 with $400,000 in 401k? ›

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

How many Americans have no savings for retirement? ›

Putting money aside today is essential for financial stability in your golden years. Even if you are contributing to a retirement account, knowing how much to save can be confusing. Nearly one-third — 31% — of Americans have no retirement savings goal, according to a recent survey conducted by GOBankingRates.

What is a good 401k balance at age 60? ›

By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.

How many people have over $1 million in their 401k? ›

Fidelity also reported that the number of 401(k) accounts with balances of at least $1 million rose in the fourth quarter by 20%, to 422,000 accounts; and by 41% for the whole year. The average account balance for this group was $1,551,300 in the fourth quarter.

What percentage of 401k holders are over 1 million? ›

The number of people in Fidelity's millionaires club remains relatively small — 1.8 percent of 401(k) participants and 2.61 percent of IRA holders — but they demonstrate a lot of positive behaviors that other investors should follow, such as not panicking when there's a market downturn.

What percentage of Americans have $100000 for retirement? ›

14% of Americans Have $100,000 Saved for Retirement

Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.

What is the net worth of the top 1 percent? ›

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

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