Is $10 million enough to retire?
$10 million produces $400,000 in year one at 4.0%. Against $300,000 of spending that is 133% coverage — the first-year withdrawal funds the spend. A constant 5.0% return still has money at year 35. Across 1,000 seeded paths the spend lasts the full horizon in 67% of worlds; the 10th-to-90th ending range is $0 to $57,770,004. To see how long $10 million lasts at other spending levels, with Social Security and taxes, use the how long will my money last calculator.
How much income will $10 million generate?
A withdrawal rate turns a nest egg into income. The higher the rate, the more you spend now and the sooner the money can run out. Years shown at a steady 5% return, with the withdrawal raised 2.0% a year for inflation.
| Withdrawal rate | A year | A month | Lasts at a 5% return |
|---|---|---|---|
| 3.0% | $300,000 | $25,000 | more than 60 years |
| 3.5% | $350,000 | $29,167 | 59 years |
| 4.0% | $400,000 | $33,333 | 44 years |
| 4.5% | $450,000 | $37,500 | 35 years |
| 5.0% | $500,000 | $41,667 | 30 years |
$10 million plus Social Security
Social Security pays beside the portfolio, so the nest egg only has to cover the gap. Monthly income with a 4% withdrawal and benefits claimed at 67, using the estimates from Social Security’s own formula for a steady career:
| Household | Social Security | From $10 million | Total a month |
|---|---|---|---|
| Single, $50,000 career | $2,054 | $33,333 | $35,387 |
| Single, $75,000 career | $2,694 | $33,333 | $36,027 |
| Couple, one $100,000 career and a spousal benefit | $4,998 | $33,333 | $38,331 |
| Couple, two $60,000 careers | $4,620 | $33,333 | $37,953 |
Withdrawals from a traditional IRA or 401(k) are taxable income, so the spendable amount is lower: see the tax on a $400,000 401(k) withdrawal or the retirement taxes pages for your state.
How long will $10 million last in retirement?
Years $10 million lasts at a steady return, with the withdrawal raised 2.0% a year for inflation. Taking 4%, $400,000 a year, at a 5% return lasts 44 years. Social Security or a pension lowers what the portfolio has to pay, so only the gap counts.
| Withdrawal a year | 4% return | 5% return | 6% return | 7% return |
|---|---|---|---|---|
| $300,000 (3%) | 53 years | 60+ years | 60+ years | 60+ years |
| $400,000 (4%) | 34 years | 44 years | 60+ years | 60+ years |
| $500,000 (5%) | 26 years | 30 years | 37 years | 57 years |
| $600,000 (6%) | 20 years | 23 years | 26 years | 32 years |
$10 million by retirement age
Funding $300,000 a year from age 60, $10 million lasts to 95 in 67% of paths on cautious returns and 89% on Trinity-style returns. Waiting until 70 raises that to 88% and 98%; starting at 50 drops it to 57% and 78%. For 9 in 10 paths to last from 65, spending has to stay near $237,000 to $335,500 a year, which is $19,750 to $27,958 a month.
| Retire at | Years funded | Lasts: cautious | Lasts: Trinity-style | 9-in-10 spend: cautious | 9-in-10 spend: Trinity-style |
|---|---|---|---|---|---|
| 45 | 50 | 51% | 74% | $132,500 | $220,500 |
| 50 | 45 | 57% | 78% | $153,500 | $241,000 |
| 55 | 40 | 61% | 81% | $164,000 | $259,500 |
| 60 | 35 | 67% | 89% | $200,000 | $294,000 |
| 65 | 30 | 78% | 95% | $237,000 | $335,500 |
| 70 | 25 | 88% | 98% | $287,000 | $381,000 |
Cautious is 5% return, 15% volatility and 2% inflation, a stress case below long-run market history. Trinity-style is the Trinity study calculator's 7%, 12% and 3%.
Retiring with $10 million at a set age, with Social Security, access before 59½ and health cover before Medicare: at 40, at 45, at 50, at 55, at 58, at 60, at 62, at 65, at 67, at 70.
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Other nest eggs
From 65 on Trinity-style returns, $10 million holds about $335,500 a year in 9 of 10 paths. $8 million holds $265,500. Is it enough to retire on $100,000, $150,000, $200,000, $250,000, $300,000, $350,000, $400,000, $450,000, $500,000, $600,000, $650,000, $700,000, $750,000, $800,000, $850,000, $900,000, $1 million, $1.1 million, $1.2 million, $1.25 million, $1.3 million, $1.4 million, $1.5 million, $1.6 million, $1.75 million, $1.8 million, $2 million, $2.2 million, $2.5 million, $3 million, $3.5 million, $4 million, $4.5 million, $5 million, $6 million, $7 million, $8 million?