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How long will $1.25 million last at $80,000 a year?

21 years at a steady 5% return, with the $80,000 ($6,667 a month) raised 2% a year for inflation. Below: the balance year by year, the odds in 1,000 simulated markets, what other returns do, Social Security, the tax on the withdrawal, and a calculator set to these numbers.

Short answer: About 21 years at a steady 5% return, with the $80,000 raised 2% a year for inflation: retiring at 60 it runs out at age 80, at 65 at age 85. That is 6.4% of $1.25 million in the first year. At 7% it lasts 28 years; at 3%, 17 years.

$1.25 million at $80,000 a year, year by year

Starting at 65, the money runs out at age 85. The withdrawal grows 2% a year, so by year 20 it is $116,545; the balance earns 5% on what is left after each withdrawal.

$1.25 million, $80,000 a year rising 2%, 5% return, from age 65
YearAgeBalance at startWithdrawalBalance at end
165$1,250,000$80,000$1,228,500
266$1,228,500$81,600$1,204,245
367$1,204,245$83,232$1,177,064
468$1,177,064$84,897$1,146,775
569$1,146,775$86,595$1,113,190
670$1,113,190$88,326$1,076,107
771$1,076,107$90,093$1,035,314
872$1,035,314$91,895$990,590
973$990,590$93,733$941,700
1074$941,700$95,607$888,398
1175$888,398$97,520$830,422
1276$830,422$99,470$767,500
1377$767,500$101,459$699,342
1478$699,342$103,489$625,647
1579$625,647$105,558$546,093
1680$546,093$107,669$460,344
1781$460,344$109,823$368,048
1882$368,048$112,019$268,830
1983$268,830$114,260$162,298
2084$162,298$116,545$48,041
2185$48,041$48,041$0

The odds $1.25 million lasts at $80,000 a year

Returns arrive in a random order, and a few bad years early do the most damage. In 1,000 simulated markets, this is the share in which $80,000 a year, rising with inflation, still leaves money in the account after each number of years.

Chance $80,000 a year from $1.25 million lasts, 1,000 simulated markets
ForTrinity-style (7%, 12%)Cautious (5%, 15%)
20 years54%39%
25 years31%22%
30 years20%14%
35 years14%10%
40 years11%7%

What other returns and inflation do

Years $80,000 a year from $1.25 million lasts, by return and yearly raise
ReturnNo raise2% raise3% raise
3%21 years17 years16 years
4%24 years19 years17 years
5%28 years21 years19 years
6%38 years24 years21 years
7%60+ years28 years24 years

With Social Security covering part of it

If Social Security pays part of the $80,000 from some point, the portfolio only pays the rest. Retiring at 65 and claiming at 67 means two years before benefits start; retiring at 62, five.

Years $1.25 million lasts, $80,000 a year in total, Social Security from 67
Benefit a monthRetire at 62Retire at 65Retire at 67
$1,50027 years29 years30 years
$2,00030 years33 years36 years
$2,50035 years40 years44 years

Tax on an $80,000 withdrawal

From a traditional 401(k) or IRA, the whole withdrawal is ordinary income, and it can make more of your Social Security taxable. Federal tax it adds at 65 on 2026 rules, estimates:

Federal tax an $80,000 withdrawal adds at 65
HouseholdFederal taxShare of the withdrawal
Single, $24,000 of Social Security$11,82215%
Married, $42,000 of Social Security$7,68810%

Roth withdrawals after 59½ and a five-year holding period are tax-free; money in a taxable account is taxed only on the gains. The retirement tax calculator adds state tax.

The calculator, set to these numbers

Your money lasts21 yearsRuns out around age 85
Most you can withdraw for 30 years$61,482 a year$5,123 a month, rising with inflation
Taken from the portfolio$80,000 a year6.4% of the portfolio in year one

Taking $80,000 a year ($6,667 a month) from $1,250,000, raised 2.0% a year for inflation, at a steady 5.0% return, the money runs out in year 21, around age 85. To make it last exactly 30 years, you could start at $61,482 a year.

Success rate12%1000 seeded paths
10th percentile ending$0
Median ending$0
90th percentile ending$317,893

Other withdrawals from $1.25 million

Years $1.25 million lasts by withdrawal, 5% return, 2% raises
Withdrawal a yearA monthLasts
$40,000$3,33360+ years
$50,000$4,16744 years
$60,000$5,00032 years
$70,000$5,83325 years
$80,000$6,66721 years
$100,000$8,33316 years
$120,000$10,00013 years

All withdrawals and the odds on one page: how long $1.25 million lasts. The same $80,000 a year from $800,000, $900,000, $1 million, $1.5 million, $1.75 million, $2 million or $2.5 million.

How it is worked out

The steady-return figures are the how-long calculator’s own math: the withdrawal comes out at the start of each year, the rest earns the return, and the next withdrawal is 2% larger to keep up with inflation. Real markets do not return the same every year, so the odds come from 1,000 simulated sequences of yearly returns: Trinity-style (7% average, 12% volatility, 3% inflation) and cautious (5%, 15%, 2%). Taxes and fees are not taken out; take them from the withdrawal you enter. More on the method on the methodology page.

Frequently asked questions

How long will $1.25 million last if I withdraw $80,000 a year?
21 years at a steady 5% return when the withdrawal rises 2% a year with inflation, or 28 years if it stays at $80,000. The first withdrawal is 6.4% of the balance.
How long will $1.25 million last at $6,667 a month?
$6,667 a month is $80,000 a year, so the same 21 years at a 5% return with 2% yearly raises. Taxes come out of the withdrawal: from a traditional 401(k) or IRA, part of each payment goes to income tax.
What if Social Security covers part of the $80,000?
With $2,000 a month of Social Security from year three, the portfolio pays $56,000 a year from then on and lasts 33 years on a steady 5% return, against 21 years without it.