Can You Retire With $1 Million?

A million dollars sounds like a lot. For most of American history, it was the definition of "rich."

But is it enough to retire on?

The short answer: Maybe. It depends on when you retire, how much you spend, and how long you live.

The real answer: You need to see the numbers for yourself.

The Quick Math (And Why It's Wrong)

The popular "4% rule" says you can withdraw 4% of your portfolio each year without running out of money. With $1 million, that's $40,000 per year.

Simple, right?

Not quite. The 4% rule was based on historical data and assumes:

• A 30-year retirement
• A specific stock/bond mix
• No major market crashes early in retirement

What if you retire at 55 and live to 95? What if we get a 2008-style crash in your first year? What if inflation runs hot for a decade?

The 4% rule doesn't tell you any of this.

What 1,000 Simulations Tell Us

Instead of hoping for the best, we can run your scenario through 1,000 different market histories. Each simulation uses real volatility data to model what could happen.

Here's what we found for a typical scenario:

The setup:

• Age 60, retiring now
• $1 million saved
• $40,000/year spending (4% withdrawal)
• Planning to age 90

The result: Run this scenario yourself

You'll see a range of outcomes. Some simulations show you dying with $2 million. Others show you running out of money at 82.

The question isn't "will I be fine?" It's "what are the odds, and can I live with them?"

Three Scenarios With $1 Million

Scenario 1: Conservative Spender (3.5% withdrawal)

Spending $35,000/year instead of $40,000 dramatically improves your odds.

Try it

This is the difference between "probably fine" and "almost certainly fine."

Scenario 2: Early Retiree (Age 55)

Retiring 5 years earlier means 5 more years of withdrawals and 5 fewer years of contributions. The math gets harder.

Try it

At 55 with $1 million, you might want to consider part-time work or a lower withdrawal rate.

Scenario 3: Delayed Social Security

If you can cover expenses until 70 and then rely more on Social Security, your portfolio has to do less work. Many people underestimate how much this helps.

What Actually Matters

After running thousands of scenarios, here's what moves the needle:

1. Your withdrawal rate - The difference between 3.5% and 4.5% is huge
2. When you retire - Each year of work is a year of saving AND one less year of withdrawals
3. Sequence of returns - A crash in year 1 is far worse than a crash in year 20
4. How long you live - Planning to 85 vs 95 changes everything

What doesn't matter as much: trying to pick the "best" investments. A diversified portfolio of low-cost index funds is fine. The math dominates.

So, Can You Retire With $1 Million?

• At 65 with modest spending? Probably yes.
• At 55 with $40k/year spending? It's tight. Run the numbers.
• At any age with a paid-off house and Social Security coming? Much more comfortable.

The only way to know is to model YOUR situation with YOUR numbers.

Run Your Own Numbers

Every scenario is different. Don't trust rules of thumb with your retirement.

Open the calculator and plug in your real numbers. See what 1,000 market scenarios mean for your plan.

It takes 60 seconds. The peace of mind (or the wake-up call) is worth it.

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This calculator uses Monte Carlo simulation with historical market volatility. It's for educational purposes only and is not financial advice. Learn more about the methodology.