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How long will $900,000 last at $40,000 a year?

36 years at a steady 5% return, with the $40,000 ($3,333 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 36 years at a steady 5% return, with the $40,000 raised 2% a year for inflation: retiring at 60 it runs out at age 95, at 65 at age 100. That is 4.4% of $900,000 in the first year. At 7% it lasts more than 60 years; at 3%, 26 years.

$900,000 at $40,000 a year, year by year

Starting at 65, the money runs out at age 100. The withdrawal grows 2% a year, so by year 20 it is $58,272; the balance earns 5% on what is left after each withdrawal.

$900,000, $40,000 a year rising 2%, 5% return, from age 65
YearAgeBalance at startWithdrawalBalance at end
165$900,000$40,000$903,000
266$903,000$40,800$905,310
367$905,310$41,616$906,879
468$906,879$42,448$907,652
569$907,652$43,297$907,572
670$907,572$44,163$906,580
771$906,580$45,046$904,610
872$904,610$45,947$901,595
973$901,595$46,866$897,465
1074$897,465$47,804$892,145
1175$892,145$48,760$885,554
1276$885,554$49,735$877,610
1377$877,610$50,730$868,225
1478$868,225$51,744$857,304
1579$857,304$52,779$844,752
1680$844,752$53,835$830,463
1781$830,463$54,911$814,329
1882$814,329$56,010$796,235
1983$796,235$57,130$776,061
2084$776,061$58,272$753,678
2185$753,678$59,438$728,952
2286$728,952$60,627$701,741
2387$701,741$61,839$671,897
2488$671,897$63,076$639,262
2589$639,262$64,337$603,671
2690$603,671$65,624$564,949
2791$564,949$66,937$522,913
2892$522,913$68,275$477,369
2993$477,369$69,641$428,115
3094$428,115$71,034$374,935
3195$374,935$72,454$317,605
3296$317,605$73,904$255,886
3397$255,886$75,382$189,530
3498$189,530$76,889$118,272
3599$118,272$78,427$41,838
36100$41,838$41,838$0

The odds $900,000 lasts at $40,000 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 $40,000 a year, rising with inflation, still leaves money in the account after each number of years.

Chance $40,000 a year from $900,000 lasts, 1,000 simulated markets
ForTrinity-style (7%, 12%)Cautious (5%, 15%)
20 years91%79%
25 years80%59%
30 years65%43%
35 years52%35%
40 years44%27%

What other returns and inflation do

Years $40,000 a year from $900,000 lasts, by return and yearly raise
ReturnNo raise2% raise3% raise
3%37 years26 years23 years
4%52 years30 years26 years
5%60+ years36 years30 years
6%60+ years50 years36 years
7%60+ years60+ years49 years

With Social Security covering part of it

If Social Security pays part of the $40,000 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 $900,000 lasts, $40,000 a year in total, Social Security from 67
Benefit a monthRetire at 62Retire at 65Retire at 67
$1,50060+ years60+ years60+ years
$2,00060+ years60+ years60+ years
$2,50060+ years60+ years60+ years

Tax on a $40,000 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 a $40,000 withdrawal adds at 65
HouseholdFederal taxShare of the withdrawal
Single, $24,000 of Social Security$4,03010%
Married, $42,000 of Social Security$1,2953%

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 lasts36 yearsRuns out around age 100
Most you can withdraw for 30 years$44,267 a year$3,689 a month, rising with inflation
Taken from the portfolio$40,000 a year4.4% of the portfolio in year one

Taking $40,000 a year ($3,333 a month) from $900,000, raised 2.0% a year for inflation, at a steady 5.0% return, the money runs out in year 36, around age 100. To make it last exactly 30 years, you could start at $44,267 a year.

Success rate43%1000 seeded paths
10th percentile ending$0
Median ending$0
90th percentile ending$2,367,032

Other withdrawals from $900,000

Years $900,000 lasts by withdrawal, 5% return, 2% raises
Withdrawal a yearA monthLasts
$30,000$2,50060+ years
$40,000$3,33336 years
$50,000$4,16725 years
$60,000$5,00020 years
$70,000$5,83316 years
$80,000$6,66714 years

All withdrawals and the odds on one page: how long $900,000 lasts. The same $40,000 a year from $400,000, $450,000, $500,000, $600,000, $700,000, $750,000, $800,000, $1 million or $1.25 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 $900,000 last if I withdraw $40,000 a year?
36 years at a steady 5% return when the withdrawal rises 2% a year with inflation, or more than 60 years if it stays at $40,000. The first withdrawal is 4.4% of the balance.
How long will $900,000 last at $3,333 a month?
$3,333 a month is $40,000 a year, so the same 36 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 $40,000?
With $2,000 a month of Social Security from year three, the portfolio pays $16,000 a year from then on and lasts more than 60 years on a steady 5% return, against 36 years without it.