How To Retire on 4 Million Dollars

Shawn Plummer

CEO, The Annuity Expert

When it comes to retirement planning, there are a lot of questions that people have. For example, how much money do you need to retire comfortably? How long will your money last? And, perhaps the most critical question is, can you retire with $4 million? This guide will explore these questions and give tips on how to make your money last in retirement.

Can I Retire Comfortably On $4 Million?

The simple answer is yes. You can retire with $4 million. However, it is essential to note that your lifestyle will significantly affect how long your money will last. For example, four million dollars may not be enough if you like to travel and live a luxurious lifestyle. On the other hand, if you are content with a more modest lifestyle, then $4,000,000 could last you decades in retirement.

Is 4 Million Enough To Retire

How Long Will $4 Million Last In Retirement?

This question is problematic because it depends on various factors, including age, health, and lifestyle. However, we can give you a rough estimate. For example, if you live a modest lifestyle and have no significant health problems, your $4,000,000 could last 20-30 years in retirement.

How To Make $4 Million Last A Lifetime In Retirement?

The only way to guarantee you don’t run out of money in retirement is to purchase an annuity with a lifetime income rider. This guarantees you receive a certain amount of money each month for the rest of your life, no matter how long you live.

For example, if a 55-year-old person purchases a $4,000,000 annuity with a lifetime income rider and wants to retire in 10 years at age 65, they would receive roughly $571,261 per year for the rest of their life. If you live for 30 years in retirement, you will receive over $17 million in payments. When the annuity owner dies, the remaining balance is passed down to beneficiaries in a lump sum.

Can I Retire With $4 Million

Social Security

The average monthly Social Security income 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 better understand the income you could receive off $4,000,000 in savings. The data will be based on:

  • Social Security Benefits will be based on couples at $3,086 total.
  • Deferred annuity with an income rider providing a monthly income for life.
  • The starting point will be age 62 since this is the earliest age to collect SSI.
What Percentage Of People Retire With $4,000,000

How To Retire On 4 Million Dollars Immediately

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

ADDITIONAL READINGHow Much Does A $1,000,000 Annuity Pay?

If you retire on a $4,000,000 annuity, starting immediately, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$25,167$28,253
65$3,086$26,433$29,529
70$3,086$28,500$31,586
Total = Monthly Income for Life

How To Retire On 4 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). The “Age” column is the purchase date. If you retire in 5 years on a $4,000,000 annuity, your monthly income for life would be:

AgeSSIAnnuityTotal
62$3,086$38,271$41,357
65$3,086$39,640$42,726
70$3,086$42,433$45,519
Total = Monthly Income for Life

How To Retire On 4 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 $4,000,000, your monthly income for life would be:

AgeSSIAnnuityTotal
40$3,086$52,609$55,695
45$3,086$58,473$61,559
50$3,086$64,418$67,504
Total = Monthly Income for Life

How To Retire On $4 Million By Age

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

Retire At Age 55 With $4 Million.

The following table estimates the guaranteed annual income a 55-year-old can retire with $4 million. This does not include Social Security Benefits.

Annuity Purchase DateAnnual Income At 55
Age 40$546,543
Age 45$481,016
Age 50$352,800
Age 55$260,000

Retire At Age 60 With $4 Million.

This table estimates the guaranteed annual income a 60-year-old can retire with $4 million. This table does not include Social Security Benefits.

Annuity Purchase DateAnnual Income At 60
Age 40$631,309
Age 45$620,258
Age 50$555,200
Age 55$386,772

Retire At Age 65 With $4 Million.

The following table estimates the guaranteed annual income a 65-year-old can retire with a $4 million annuity. This table does not include Social Security Benefits.

Annuity Purchase DateAnnual Income At 65
Age 40$730,839
Age 45$701,672
Age 50$695,026
Age 55$575,615

Why Use An Annuity?

Why use 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. 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, and you’ll be able to earn interest along the way!

Annuity Basics

Understanding Lifetime Income Riders

Estimate Your Retirement Income Payments

Use our annuity calculator to generate estimates, then request a quote.

Keeping Up With Inflation

Some annuities offer a guaranteed lifetime income that can 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.

How Long Will 4 Million Last In Retirement

Things To Consider When Retiring

Next Steps

If you want to retire with $4 million, it is vital to start planning now. Begin by estimating your expenses and creating a budget. Then, start saving as much money as possible and investing for the future. Lastly, be sure to purchase an annuity with a lifetime income rider to guarantee a steady income stream in retirement. Contact us today for a free quote on how much money you will need to save each month to reach your goal! We can help you get there sooner rather than later.

How To Retire With $4 Million

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Frequently Asked Questions

Is $4 million enough to retire at 50?

Yes, you can retire at 50 with four million dollars. At age 50, an annuity will provide a guaranteed level income of $215,000 annually starting immediately for the rest of the insured’s lifetime. The income will stay the same and never decrease. If the annuitant selected the increasing income option, they would receive $168,000 annually initially, with the income amount increasing over time to keep up with inflation. Either lifetime income option will continue to pay the annuitant even after the annuity has run out of money. At the time of the annuitant’s death, the designated beneficiary will inherit the remainder of the annuity.

Is $4 million enough to retire at 55?

You can retire at 55 with four million dollars. Opting for an annuity at this age, you’ll receive a fixed yearly income of $225,000 for life. Alternatively, starting with $186,000 annually, you can choose an increasing income option that adjusts for inflation. Both options ensure continuous payment even if the annuity funds are depleted, and any remaining amount will be passed on to a designated beneficiary upon the annuitant’s death.

Is $4 million enough to retire at 60?

At age 60, with four million dollars, you can retire and opt for an annuity, guaranteeing a lifetime income of $244,000 annually without any decrease. Alternatively, you can begin with $208,000 yearly, which will increase over time to offset inflation. Regardless of the chosen option, payments continue even if the annuity funds are exhausted, and any remaining balance is inherited by a designated beneficiary upon the annuitant’s demise.

Is $4 million enough to retire at 65?

Suppose you retire at 65 with four million dollars. In that case, an annuity can offer a stable yearly income of $269,200 or, if you prefer an inflation-adjusted approach, start at $230,800 with increments over time. Either way, payments persist even if the annuity’s funds deplete, and upon the annuitant’s passing, the leftover amount is passed to a chosen beneficiary. The cited rates, influenced by immediate payout decisions, can increase if the annuitant delays, though they may differ by state.

Retirement Income Guides

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed insurance agent and annuity broker with over a decade of first-hand experience. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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