How Long Does $1 Million Last After You Turn 50?

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If you’re 50 and sitting on a million-dollar nest egg, congratulations! It can take decades of saving and investing in a brokerage account to reach that point. As to how long it will last, there are a lot of factors to consider, including your location, lifestyle, and the overall economy.Knowing whether you can retire with $1 million is a tough call — particularly as it will be quite a few years before Social Security and Medicare kick in. Moreover, if the bulk of your money is in 401(k)s and IRAs, you may have to pay a penalty to access that money before you reach 59 1/2.Here’s how to find out how long $1 million will last.What the 4% rule tells usThe 4% rule is a great way to estimate how much you can withdraw annually for at least 30 years without running out of money. If you have $1 million, it tells us you could safely take out $40,000 in the first year. After that, you could confidently continue to withdraw the same amount, adjusted for inflation, for another 30 years or more.You might be able to withdraw more than 4%; it’s just that the more you take out, the higher the probability that you’ll run out of money. If you want to make bigger withdrawals, you might choose a riskier mix of investments in the hope you’ll get higher returns. Similarly, a more aggressive portfolio might stretch to 35 or 45 years.A financial planner can help you map out how different scenarios might work for your situation. To give you an idea, Fidelity ran simulations on different investment portfolios and market scenarios. It concluded that you’d have a 75% chance of stretching a balanced portfolio with a 5.6% withdrawal rate for 25 years. So if you wanted to withdraw $56,000 in your first year, you could be fairly certain it would last until you were 75.A reputable low-fee brokerage can help you manage your portfolio and get the right mix of investments. J.P. Morgan Self-Directed Investing is offering welcome bonuses for new investors right now. Click here to learn more about its zero-fee mutual fund and ETF trading and open an account.How much do you need each year?We know that $1 million would comfortably sustain an income of $40,000 plus inflation for 30 years or more. To find out how that relates to you, we need to work out how much you’ll withdraw. The gap between your income and spending is the amount you’ll need to take from your investment portfolio.In terms of spending, financial planners often estimate you’ll need about 80% of your current income once you retire. But that logic may not apply at 50. You may find your post-work lifestyle is similar cost-wise. If you plan on traveling, taking up an expensive hobby, or have health difficulties, it may cost more. Consider both your current income and any lifestyle changes when you estimate your costs.Calculate your additional sources of incomeSocial Security is an important income source for many retirees, but you won’t be able to access it until you are at least 62. As such, it might help to break your planning into two sections: pre– and post–Social Security.Here are some additional potential income sources to factor in:PensionAnnuitiesRental incomePart-time workDividend-paying stocksCDs and savings accountsLet’s say you expect to spend $7,000 a month, and your additional income will generate $3,000. You’d need to take $4,000 a month — $48,000 a year — from your brokerage accounts. With a $1 million portfolio, that’s a withdrawal rate of 4.8%. As we saw above, in that scenario, you could be relatively confident your money would last for 30 years or more.$1 million may not last as long as you hopeAlthough the CDC says the average life expectancy in the U.S. is 77.5 years, there’s a good chance you’ll live into your 80s or 90s. As such, if you stop working at 50, you might want more confidence that your money will last longer than 30 years.Not only that, but some people’s lives are more expensive than others. Your money will go a lot further if you live in Mississippi vs. Hawaii. Even if you live in a low-cost area, you may find you don’t have enough extra income sources to supplement your investment.If you find you’ll be drawing too heavily on your investments or want them to last longer, you have a few options. You can cut your expenses, find another source of income, or build your investment portfolio more.Don’t be afraid to wait a bit longerIf you worry $1 million isn’t enough, consider taking a little more time to build your fund. Spending a few more years in the workplace would get you closer to accessing Social Security and other retirement benefits.Your portfolio would also have longer to accumulate value. Plus, those over 50 can get extra tax benefits by making catch-up contributions to their IRAs. We’ve picked some of the best brokerages for IRAs here.At 50, you’ve still got a lot of years ahead of you. If you’ve already saved $1 million, it would be a shame to spend any of those years worrying about money.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’re 50 and sitting on a million-dollar nest egg, congratulations! It can take decades of saving and investing in a brokerage account to reach that point. As to how long it will last, there are a lot of factors to consider, including your location, lifestyle, and the overall economy.

Knowing whether you can retire with $1 million is a tough call — particularly as it will be quite a few years before Social Security and Medicare kick in. Moreover, if the bulk of your money is in 401(k)s and IRAs, you may have to pay a penalty to access that money before you reach 59 1/2.

Here’s how to find out how long $1 million will last.

What the 4% rule tells us

The 4% rule is a great way to estimate how much you can withdraw annually for at least 30 years without running out of money. If you have $1 million, it tells us you could safely take out $40,000 in the first year. After that, you could confidently continue to withdraw the same amount, adjusted for inflation, for another 30 years or more.

You might be able to withdraw more than 4%; it’s just that the more you take out, the higher the probability that you’ll run out of money. If you want to make bigger withdrawals, you might choose a riskier mix of investments in the hope you’ll get higher returns. Similarly, a more aggressive portfolio might stretch to 35 or 45 years.

A financial planner can help you map out how different scenarios might work for your situation. To give you an idea, Fidelity ran simulations on different investment portfolios and market scenarios. It concluded that you’d have a 75% chance of stretching a balanced portfolio with a 5.6% withdrawal rate for 25 years. So if you wanted to withdraw $56,000 in your first year, you could be fairly certain it would last until you were 75.

A reputable low-fee brokerage can help you manage your portfolio and get the right mix of investments. J.P. Morgan Self-Directed Investing is offering welcome bonuses for new investors right now. Click here to learn more about its zero-fee mutual fund and ETF trading and open an account.

How much do you need each year?

We know that $1 million would comfortably sustain an income of $40,000 plus inflation for 30 years or more. To find out how that relates to you, we need to work out how much you’ll withdraw. The gap between your income and spending is the amount you’ll need to take from your investment portfolio.

In terms of spending, financial planners often estimate you’ll need about 80% of your current income once you retire. But that logic may not apply at 50. You may find your post-work lifestyle is similar cost-wise. If you plan on traveling, taking up an expensive hobby, or have health difficulties, it may cost more. Consider both your current income and any lifestyle changes when you estimate your costs.

Calculate your additional sources of income

Social Security is an important income source for many retirees, but you won’t be able to access it until you are at least 62. As such, it might help to break your planning into two sections: pre– and post–Social Security.

Here are some additional potential income sources to factor in:

PensionAnnuitiesRental incomePart-time workDividend-paying stocksCDs and savings accounts

Let’s say you expect to spend $7,000 a month, and your additional income will generate $3,000. You’d need to take $4,000 a month — $48,000 a year — from your brokerage accounts. With a $1 million portfolio, that’s a withdrawal rate of 4.8%. As we saw above, in that scenario, you could be relatively confident your money would last for 30 years or more.

$1 million may not last as long as you hope

Although the CDC says the average life expectancy in the U.S. is 77.5 years, there’s a good chance you’ll live into your 80s or 90s. As such, if you stop working at 50, you might want more confidence that your money will last longer than 30 years.

Not only that, but some people’s lives are more expensive than others. Your money will go a lot further if you live in Mississippi vs. Hawaii. Even if you live in a low-cost area, you may find you don’t have enough extra income sources to supplement your investment.

If you find you’ll be drawing too heavily on your investments or want them to last longer, you have a few options. You can cut your expenses, find another source of income, or build your investment portfolio more.

Don’t be afraid to wait a bit longer

If you worry $1 million isn’t enough, consider taking a little more time to build your fund. Spending a few more years in the workplace would get you closer to accessing Social Security and other retirement benefits.

Your portfolio would also have longer to accumulate value. Plus, those over 50 can get extra tax benefits by making catch-up contributions to their IRAs. We’ve picked some of the best brokerages for IRAs here.

At 50, you’ve still got a lot of years ahead of you. If you’ve already saved $1 million, it would be a shame to spend any of those years worrying about money.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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