Can you retire on $3,000,000?
Income from $3,000,000 at different withdrawal rates
How much you can safely spend depends on how long retirement lasts, how your money is invested and how markets behave early on. The 4% rule is a common starting point.
$3,000,000 in savings
| Withdrawal rate | Income a year | Income a month |
|---|---|---|
| 3% | $90,000 | $7,500 |
| 3.5% | $105,000 | $8,750 |
| 4% | $120,000 | $10,000 |
| 5% | $150,000 | $12,500 |
Before taxes and Social Security.
How long would it last?
Taking 4% a year and adjusting for inflation, past data suggests savings of $3,000,000 have often lasted 30 years or more. Retiring at 55 instead of 65 means a longer retirement, so a lower rate such as 3.5% is often used.
How long will $3,000,000 last?
The table assumes you withdraw a fixed starting amount that rises 2.5% a year with inflation while the rest stays invested. It shows how sensitive the answer is to the amount you take and to market returns.
$3,000,000 in savings
| Starting withdrawal | Lasts (5% return) | Lasts (7% return) |
|---|---|---|
| $90,000 a year (3%) | 70+ years | 70+ years |
| $120,000 a year (4%) | 39 years | 70+ years |
| $150,000 a year (5%) | 28 years | 48 years |
| $180,000 a year (6%) | 22 years | 30 years |
| $210,000 a year (7%) | 18 years | 23 years |
Illustration only. Real returns vary and are not guaranteed.
Add Social Security for the full picture
If you also receive Social Security of $24,000 a year, total income from $3,000,000 at 4% would be about $144,000 a year. Check your own estimate at ssa.gov: the figure depends on your earnings record and when you claim.
Taxes on withdrawals
Money from a traditional 401(k) or IRA is taxed as ordinary income, withdrawals from a Roth account are generally tax-free, and gains in a taxable account are taxed at capital gains rates. Plan the mix of accounts you draw from to manage your tax bill.
Sources and further reading
Questions people ask
Can I retire on $3,000,000?
How much monthly income is $3,000,000 in retirement?
Results are estimates for information only, not financial advice. Read the full disclaimer.