This guide will show you how to retire on 10 million dollars step-by-step. In addition, we’ll provide estimates of your retirement income at different age brackets.
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.
- Can I Retire For 10 Million Dollars?
- How To Retire On Ten Million Dollars
- How To Retire On $10 Million By Age
- How Much Does $10 Million Payout?
- Why Buy An Annuity?
- Keeping Up With Inflation
- Things To Consider When Retiring
- Next Steps
- Find Out How Much Income Your $10 Million Will Provide In Retirement
- Retirement Income Guides
Can I Retire For 10 Million Dollars?
This is a question that many people ask themselves as they approach retirement. The simple answer is yes. You can retire on 10 million dollars. However, there are a few things to consider before making this decision.
First, you need to ensure you have enough saved to cover your expenses. If you plan on retiring early, you must ensure that your savings are sufficient to cover your living expenses for several years.
Second, you need to factor in inflation. Over time, the cost of living will increase, so you must ensure that your 10 million dollars will be worth less.
Third, you need to consider your lifestyle. If you plan on retiring to a life of leisure, you must ensure that your 10 million dollars will last you for several years. However, you may not need as much money if you plan to continue to work after retirement.
Fourth, it would be best if you considered taxes. If you are in a high tax bracket, you will need to make sure that your 10 million dollars are invested in a way that minimizes your tax liability.
Finally, it would be best to decide how you want to receive your income in retirement. You can choose to receive it in lump sum payments, as an annuity, or in a combination of both.
How To Retire On Ten Million Dollars
The average monthly Social Security Income check-in in 2022 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 $10,000,000 in savings. The data will be based on the following:
- 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.
How to Retire 10 Million Dollars, Immediately
The table below illustrates how much monthly income can be generated immediately with annuity payments and Social Security Income (SSI).
ADDITIONAL READING: How Much Does A $1,000,000 Annuity Pay?
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $43,200 | $46,286 |
| 65 | $3,086 | $47,210 | $50,296 |
| 70 | $3,086 | $51,330 | $54,416 |
Total = Monthly Income for Life
How to Retire 10 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 $10,000,000 annuity, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 62 | $3,086 | $65,520 | $68,606 |
| 65 | $3,086 | $71,470 | $74,556 |
| 70 | $3,086 | $77,430 | $80,516 |
Total = Monthly Income for Life
How to Retire 10 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 $10,000,000, your monthly income for life would be:
| Age | SSI | Annuity | Total |
|---|---|---|---|
| 42 | $3,086 | $92,330 | $95,416 |
| 45 | $3,086 | $99,000 | $102,086 |
| 50 | $3,086 | $131,710 | $134,796 |
Total = Monthly Income for Life
How To Retire On $10 Million By Age
The following guaranteed income amounts are annual and do not include Social Security Benefits.
Retire At Age 55 With $10 Million.
| Annuity Purchase Date | Annual Income At 55 |
|---|---|
| Age 40 | $822,270 |
| Age 45 | $815,780 |
| Age 50 | $612,490 |
| Age 55 | $470,000 |
Retire At Age 60 With $10 Million.
| Annuity Purchase Date | Annual Income At 60 |
|---|---|
| Age 40 | $1,053,800 |
| Age 45 | $949,940 |
| Age 50 | $901,900 |
| Age 55 | $660,320 |
Retire At Age 65 With $10 Million.
The following guaranteed income amounts are annual and do not include Social Security Benefits.
| Annuity Purchase Date | Annual Income At 65 |
|---|---|
| Age 40 | $1,291,830 |
| Age 45 | $1,185,800 |
| Age 50 | $1,095,150 |
| Age 55 | $1,002,120 |
How Much Does $10 Million Payout?
The following table will estimate how much-guaranteed income a $10,000,000 annuity will pay out annually for the rest of a person’s life.
| Age | Immediately | In 5 Years | In 10 years | In 20 Years |
|---|---|---|---|---|
| 40 | $1,053,800 | |||
| 45 | $1,188,000 | |||
| 50 | $887,190 | $1,300,480 | ||
| 55 | $657,240 | $1,003,400 | $1,443,300 | |
| 60 | $525,000 | $764,780 | $1,066,860 | |
| 65 | $575,000 | $816,000 | $1,168,890 | |
| 70 | $625,000 | $901,000 | $1,410,840 | |
| 75 | $675,000 | $1,056,820 |
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. 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
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.
Things To Consider When Retiring
- If you can’t afford to lose money, invest your savings without the risk.
- Inflation is rising whether you like it or not. Plan accordingly or decrease your lifestyle in the future.
- Per the U.S. Department of Health and Human Services, you have a 70% chance of entering a Nursing Home, Assisted Living Facility, or Home Health Care. Buy long-term care insurance now.
- There is a 100% chance you will die; buy affordable life insurance or, at the minimum, burial insurance for funeral expenses.
Next Steps
Ten million dollars may seem like a lot of money, but it is essential to remember that it is not infinite. There are many things to consider when planning for retirement, and we can help you make the best decision for your future. So contact us today for a free quote, and let us help you plan the retirement of your dreams.
