Quick answer: A $1,000,000 retirement portfolio generates approximately $40,000 per year ($3,333/month) using the 4% withdrawal rule. With Social Security income and disciplined withdrawals, a $1M portfolio can sustain retirement for 30–40+ years.
At a 4% annual withdrawal rate ($40,000/year), a $1,000,000 portfolio at 5% annual return lasts approximately 28–30 years. At a 3% rate ($30,000/year), it can last indefinitely for many market scenarios. At a 5% rate ($50,000/year), it lasts roughly 20–22 years.
Using the 4% withdrawal rule, $1,000,000 generates approximately $3,333 per month ($40,000/year). A full annuity at age 65 generates approximately $5,000–$6,000/month guaranteed for life. A hybrid approach (50% annuity + 50% invested) generates roughly $4,200–$4,700/month.
Retiring at 60 with $1M is possible but requires careful planning. A 30-year retirement (to age 90) at 4% withdrawal yields $40,000/year — before Social Security, which you can't claim until 62 at the earliest. You'll need to bridge 2–7 years without Social Security income. At age 62, you could add $1,000–$1,500/month in Social Security; at 67 (FRA), $1,500–$2,500/month; at 70, $2,000–$3,600/month.
A $1M portfolio without Social Security income can work if you control spending. At 4% withdrawal, you have $40,000/year. For many Americans, this is tight but livable in lower cost-of-living states. However, Social Security provides critical inflation protection (COLA adjustments) that a fixed portfolio doesn't, making it the ideal supplement rather than the sole income source.
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