When saving for retirement, most people think about how much money they will need. However, another critical question is how long that money will last. This guide will determine how long $1 million will last in retirement, depending on your account type. We will also discuss tips for making your money last as long as possible!
How Long Will $1 Million Last in Retirement?
The answer to this question depends on a few factors, such as the type of account you use and how much money you withdraw each year.
If you have $100,000 in a savings account that pays 0.01% interest, it will take 100 years for your money to double. However, if you invest in a stock that pays an annual dividend of 12%, your money will double in just six years.
Your account type will also affect how long your money will last. For example, if you have $100,000 in a savings account and withdraw $4,000 each year, your money will last for 25 years.
You can do some things to make your money last longer in retirement. One thing you can do is invest in a mix of stocks and bonds. This will help to protect your money from inflation. Another thing you can do is to take withdrawals from different accounts. This will help ensure you don’t run out of money too quickly.
How To Make $1 Million Last A Lifetime In Retirement, Guaranteed
The only way to guarantee that $1,000,000 in retirement savings will last a lifetime is if it’s invested in an annuity.
An annuity is a contract between you and an insurance company where you make a lump sum payment (or series of payments). In return, the insurer agrees to make periodic payments to you for the rest of your life.
Annuities with a guaranteed lifetime income rider will provide payments as long as you live, no matter how long that is, and can be a good option if you’re concerned about longevity risk. Payments can also increase each year to help keep up with inflation.
Use our calculator to determine how much your $1 million will pay in retirement for the rest of your life.
Annuities and other retirement income strategies can help make your money last as long as needed. If you’re thinking about retirement, contact us for a quote to see how we can help. Our team of experts will work with you to find the best solution for your needs and budget. Thanks for reading!
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