Can I retire on $1 million?

$1 million at 4.0% is $40,000 in year one. This page answers whether that covers a specific spend and how often 1,000 paths last 35 years.

The answer on these inputs

$1 million produces $40,000 in year one at 4.0%. Against $50,000 of spending that is 80% coverage — the spend is larger than a 4% (or chosen) withdrawal. A constant 5.0% return exhausts the portfolio in year 30. Across 1,000 seeded paths the spend lasts the full horizon in 23% of worlds; the 10th-to-90th ending range is $0 to $1,704,117.

Change the inputs

Nest egg ($)

Annual spending (today's $)

Horizon (years)

Withdrawal rate (%)

Inflation (%)

Mean return (%)

First-year income at the rate$40,000

Coverage of the spend80%

Years the spend lasts30

1,000-path success23%

Other nest eggs

Frequently asked questions

Can I retire on $1 million?

At 4%, $1 million produces a first-year withdrawal of $40,000. Whether that covers your spending, and whether the portfolio lasts, is what the calculator on this page answers for a specific spend figure.

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