What $1 Million in Retirement Savings Looks Like in Monthly Spending

Jake Safane

Fri, May 9, 2025, 8:01 AM 5 min read

Building up a nest egg of $1 million in retirement savings might sound like a fortune, but it’s within reach of many Americans who start saving and investing early in their careers. For example, if you invest 15% of a $60,000 salary into a retirement account for 30 years, earning an average of 8% in annual returns, you’d retire a millionaire.

That said, $1 million doesn’t go as far as it used to. While it can be a comfortable retirement, it still requires careful budgeting to make sure your money lasts the rest of your lifetime.

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“Retiring with $1 million in savings is totally possible today, but it takes thoughtful planning,” said Amber Schiffert, co-founder of Tara Wealth.

Here’s what $1 million in retirement savings could look like on a monthly basis in retirement.

There are a few ways to approach drawing down your retirement savings so you have enough to live comfortably.

One strategy is the 4% rule, where you withdraw 4% of your portfolio each year, adjusting for inflation. With $1 million in retirement savings, “using the 4% rule, that gives you about $40,000 a year to safely withdraw from your investments,” Schiffert said.

That translates into about $3,333 per month, although taxes might reduce that amount, depending on your retirement accounts. Regardless, that amount alone may be enough for some retirees, such as those who have paid off their mortgage and car loans.

Retiring with $1 million is possible, according to Chad Gammon, CFP, owner of Custom Fit Financial. “I’ve seen people retire with even less than $1 million … They typically have very low living costs that are as low as $40,000 per year or lower. They might also work until age 65 or 70 to maximize their Social Security with benefits around $20,000 to $40,000 per year. They also typically do not have debt and enjoy the simple things in life,” Gammon said.

However, not everyone can live on $3,333 per month. While other sources of income like Social Security might help, if you’re trying to simply calculate what $1 million in retirement savings gets you, another option to consider is spending down your nest egg, rather than treading water with the 4% rule.

For example, if you wanted to pull out $5,000 per month from your retirement savings and the balance still earned 4% per year after taxes, that would last you approximately 27 years (not factoring in inflation). That could be enough for many, although some might end up outliving this time frame. Dropping the withdrawal slightly to, say, $4,500 per month would make your savings last longer.