How To Retire on 1 Million Dollars

Shawn Plummer

CEO, The Annuity Expert

Do you want to retire on 1 million dollars? It’s possible, but it’s not going to be easy. However, there are a lot of things you need to do to make sure you have a comfortable retirement. This guide will discuss tips and strategies to help you reach retirement goals!

If you are close to transitioning to retirement, check our Retirement Planning Guide.

If you are not close to transitioning to retirement, check out our Guaranteed Retirement Income Guide.

Use an annuity calculator to understand better the retirement income generated.

This guide will answer the following questions:

  • Can I retire with $1,000,000?
  • Can I retire with 1 million dollars at 55?
  • Can I retire at 60 with 1 million dollars?
  • How to retire in 20 years with $1,000,000?
  • Can I retire at 62 with $1,000,000?
  • How much guaranteed income would I receive if I invested 1 million dollars?
  • Should I buy an annuity at age 40?
  • What is the best age to buy an annuity?

How to Retire on One Million Dollars

The average monthly Social Security Income check-in 2021 is $1,543 per person. In the tables below, we’ll use an annuity with a lifetime income rider coupled with SSI to provide you a better idea of the income you could receive off a $1,000,000 in savings. The data will be based on:

How to Retire on 1 Million Dollars, Immediately

The table below illustrates how much monthly income can be generated immediately with a combination of annuity payments and Social Security Income (SSI).

ADDITIONAL READING: How Much Does A $1,000,000 Annuity Pay?

AgeSSIAnnuityTotal
62$3,086$4,320$7,406
65$3,086$4,721$7,807
70$3,086$5,133$8,219
Total = Monthly Income for Life

How to Retire on 1 Million Dollars in 5 Years

The table below illustrates how much monthly income can be generated in 5 years with a combination of annuity payments and Social Security Income (SSI). If you retire in 5 years on a $1,000,000 annuity, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$6,552$9,638
65$3,086$7,147$10,233
70$3,086$7,743$10,829
Total = Monthly Income for Life

How to Retire on 1 Million Dollars in 20 Years

The table below illustrates how much monthly income can be generated in 5 years with a combination of annuity payments and Social Security Income (SSI). If you retire in 20 years on $1,000,000, your monthly income for life would be:

AgeSSIAnnuityTotal
42$3,086$9,233$12,319
45$3,086$9,900$12,986
50$3,086$13,171$16,257
Total = Monthly Income for Life

How To Retire On $1 Million By Age

The following guaranteed income amounts are annual and do not include Social Security Benefits.

Retire At Age 55 With $1 Million.

The following table estimates the guaranteed annual income a 55-year-old can retire with $1 million. This does not include Social Security Benefits

Annuity Purchase DateAnnual Income At 55
Age 40$82,227
Age 45$81,578
Age 50$61,249
Age 55$47,000

Retire At Age 60 With $1 Million.

This table estimates the guaranteed annual income a 60-year-old can retire with $1 million. This table does not include Social Security Benefits.

Annuity Purchase DateAnnual Income At 60
Age 40$105,380
Age 45$94,994
Age 50$90,190
Age 55$66,032

Retire At Age 65 With $1 Million.

The following table estimates the guaranteed annual income a 65-year-old can retire with a $1 million annuity. This table does not include Social Security Benefits.

Annuity Purchase DateAnnual Income At 65
Age 40$129,183
Age 45$118,580
Age 50$109,515
Age 55$100,212

Living Off Interest on a Million Dollars

How much interest do 1 million dollars earn per year? Some retirees like to withdraw interest from a fixed interest savings account like a fixed annuity or CD. For example, the interest on one million dollars is $250,922.56 over seven years with a fixed annuity, guaranteeing 3.25% annually.

Find all the current fixed annuity rates here.

3.25% Interest Rate Over 7 Years

YearInterestEnding Amount
1$32,500.00$1,032,500.00
2$33,556.25$1,066,056.25
3$34,646.83$1,100,703.08
4$35,772.85$1,136,475.93
5$36,935.47$1,173,411.40
6$38,135.87$1,211,547.27
7$39,375.29$1,250,922.56

How Much Does $1 Million Payout?

The following table will estimate how much guaranteed income a $1,000,000 annuity will payout annually for the rest of a person’s life.

AgeImmediatelyIn 5 YearsIn 10 yearsIn 20 Years
40$105,380
45$118,800
50$88,719$130,048
55$65,724$100,340$144,330
60$52,500$76,478$106,686
65$57,500$81,600$116,889
70$62,500$90,100$141,084
75$67,500$105,682

Why Buy An Annuity?

Annuities are the only retirement plan in the United States that provides a guaranteed income for a lifetime, even if the plan runs out of money. As a result, the annuity is a money management tool in retirement, taking all the guesswork in budgeting your day-to-day expenses. By utilizing this financial plan, a retiree will never have to worry about running out of money.

Annuity Basics

Understanding Lifetime Income Riders

Estimate Your Retirement Income Payments

Take advantage of 17 different annuity calculators to determine the interest on a million dollars.

Keeping Up With Inflation

Some annuities offer a guaranteed lifetime income with the ability to increase regularly to keep up with inflation. Once the income increases, the payment amount is locked in and can never go backward from that point forward.

Example

A 40-year-old purchases a $1,000,000 annuity with a lifetime income rider to retire at age 60. At age 60, the lifetime income amount may be guaranteed $105,380 initially but hypothetically increases to $288,439 by age 67. Once the income has increased to $288,439 annually, this payment is locked in and can never go below $288,439 in the future.

On the other hand, a performance-based annuity may hypothetically generate an income of $381,349 a year for life starting at age 60, increasing to $636,610 a year by age 70. Once the income has increased to $636,610 annually, this payment is locked in and can never go below $636,610 in the future.

Things To Consider When Retiring

Conclusion

If you have a million dollars saved for retirement, an annuity is the best way to ensure that money lasts for the rest of your life. Request a quote today to find out how much income you can receive from $1,000,000. Annuities are the only retirement plan in the United States that provides a guaranteed lifetime income, so don’t wait – get started on your golden years today!

Find Out How Much Income Your $1 Million Will Provide In Retirement

Contact Us
First
Last

Frequently Asked Questions

Can I retire at 40 with $1 million?

You can retire at the age of 40 with one million dollars. If you get an immediate annuity, you will receive $34,207.68 every year for the rest of your life. The payout changes often and varies by state.

Can I retire at 45 with $1 million?

Yes, you can retire at 45 with one million dollars. You will get a guaranteed income of $36,629.52 each year for the rest of your life if you choose an immediate annuity. The payout changes frequently and varies by state.

Can I retire at 50 with $1 million?

You can retire at 50 if you have saved one million dollars. You will get a guaranteed income of $39,600 each year, starting immediately for the rest of your life. The income amount will stay the same and never decrease.

Can I retire at 55 with $1 million?

Yes, you can retire at 55 with one million dollars. You will receive a guaranteed annual income of $42,000 starting immediately and for the rest of your life. This income will stay the same and never decrease.

Can a couple retire on $1 million?

You can retire on one million dollars. Annuities can provide a guaranteed income for both spouses’ lifetimes. After researching 326 annuity products from 57 insurance companies, our data calculated that $1,000,000 would generate $47,500 annually starting immediately if both spouses were age 60, $54,450 if both spouses were age 65, and $57,200 if both spouses were age 70.

I’m 60 With $1 Million. How Much Can I Expect To Spend In Retirement

If you buy a $1 million annuity at age 60, you will get $52,500 yearly for the rest of your life. This income will be guaranteed and will never decrease. If you wait until 61 to buy the annuity, your yearly income will be $58,800.

Can I live off the interest of $1,000,000?

If you have a fixed annuity with a rate of 3.25%, you can expect to collect between $29,569 and $32,107 in interest each year. This amount will depend on how often the interest is compounded and how often you withdraw money from the account.

Can you retire with a million dollars?

Yes, you can retire with a million dollars. However, it is important to remember that your lifestyle may change, and you may have to adjust your spending accordingly.

Retirement Income Guides

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top