How Long Will $1M to $5M Last in Retirement at Age 62? Realistic Spending & Income Breakdown
- davidewhitebooks
- Jun 25
- 4 min read
Updated: 7 days ago
How Long Will $1M to $5M Last in Retirement at Age 62? Realistic Spending
Most people want a simple answer first, before reading the details. Here is a quick summary based on living to age 85. This example assumes no investment returns and no inflation.
$1,000,000 lasts about 23 years
$2,000,000 lasts about 46 years
$3,000,000 lasts about 69 years
$4,000,000 lasts about 92 years
$5,000,000 lasts about 115 years
Many Americans begin thinking seriously about retirement around age 62. Before you start drawing from your savings or claiming Social Security, it is important to understand how long your money may last. One critical question becomes the center of every conversation.
How long will your savings last?
If you plan to live until age 85, that is twenty-three years of retirement. The information below gives you a simple and clear breakdown of how much you can safely spend each year and month with savings ranging from $1,000,000 to $5,000,000. This example uses a flat drawdown approach with no inflation and no investment growth.
Assumptions
Retirement planning begins at age 62
Life expectancy is age 85, which is twenty-three years
Spending is evenly divided across twenty-three years
No inflation or investment growth is included
Note: This model focuses only on personal savings. It does not include Social Security income or pension benefits.
Important Consideration: Know Your Social Security Retirement Age
You can begin claiming Social Security benefits at age 62, but doing so results in a permanent reduction of your monthly benefit, up to 30 percent less than if you waited until your Full Retirement Age, which is age 66 to 67 depending on your birth year.
If you wait beyond your Full Retirement Age, your benefit increases by about 8 percent per year up to age 70.
What this means for you:
Before retiring at 62, carefully consider whether delaying your Social Security claim will provide a higher and more secure income later in life. Always review current guidelines directly with the Social Security Administration.
Retirement Spending Breakdown
Twenty-three years of spending from age 62 to 85
$1,000,000 equals $43,478.26 per year and $3,623.17 per month
$2,000,000 equals $86,956.52 per year and $7,246.34 per month
$3,000,000 equals $130,434.78 per year and $10,869.51 per month
$4,000,000 equals $173,913.04 per year and $14,492.68 per month
$5,000,000 equals $217,391.30 per year and $18,115.85 per month
Below is the detailed math.
Let Us See the Math
How do we get 276 months?
Twenty-three years multiplied by twelve months equals 276 months.
If You Retire at 62 with $1,000,000
$1,000,000 divided by 23 years equals $43,478.26 per year
$1,000,000 divided by 276 months equals $3,623.17 per month
If You Retire with $2,000,000
$2,000,000 divided by 23 years equals $86,956.52 per year
$2,000,000 divided by 276 months equals $7,246.34 per month
If You Retire with $3,000,000
$3,000,000 divided by 23 years equals $130,434.78 per year
$3,000,000 divided by 276 months equals $10,869.51 per month
If You Retire with $4,000,000
$4,000,000 divided by 23 years equals $173,913.04 per year
$4,000,000 divided by 276 months equals $14,492.68 per month
If You Retire with $5,000,000
$5,000,000 divided by 23 years equals $217,391.30 per year
$5,000,000 divided by 276 months equals $18,115.85 per month
Note: This simple drawdown model does not include taxes, inflation, investment growth, or Social Security income. Use this as a conservative planning baseline.
What This Means for You
This breakdown helps answer common retirement questions.
How much can I afford to spend every month?
Is $1,000,000 enough to retire comfortably?
What lifestyle can I maintain with $3,000,000?
Should I delay retirement to increase my Social Security benefit?
Whether you are in your forties, planning ahead, or in your sixties, preparing to retire soon, these numbers give you a clear starting point and greater peace of mind.
A Helpful Tool for Retirement Planning
The Texas Instruments BA II Plus Financial Calculator is one of the top choices on Amazon for retirement planning. It includes time value of money calculations, net present value, internal rate of return, and amortization functions. It allows you to project your retirement numbers in real time.
Purchase on Amazon at:
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Final Thoughts
Retirement is not just about leaving work. It is about protecting your freedom and your quality of life. Knowing how long your money will last helps you plan with confidence and reduces stress.
Whether you retire with $1,000,000 or $5,000,000, the key is to plan early, spend wisely, and review your strategy often. Claiming Social Security at the right time can also make a major difference in your monthly income.
Want More Help
If you are looking for practical steps to take control of your money and build a stronger financial future, explore my books on Amazon.
Books by David E. White
Available in Kindle eBook and Paperback
HOW TO BUDGET AND SAVE
Unlock Financial Freedom: Simple Budgeting Strategies for Every Income Level
Kindle eBook: https://amzn.to/496Y96M
Paperback: https://amzn.to/4epX4aU
RETIREMENT PLANNING HANDBOOK
Your Guide to Financial Freedom, Health, and Happiness in the Golden Years
Kindle eBook: https://amzn.to/47yDO9m
Paperback: https://amzn.to/4lptFQp
PERSONAL FINANCE FOR TEENS AND PARENTS
How to Budget, Save, and Invest as a Family for a Lifetime of Financial Success
Kindle eBook: https://amzn.to/49bmFnh
Paperback: https://amzn.to/4otKmMk
Disclosure:
These are affiliate links. If you make a purchase, I may earn a small commission at no additional cost to you. These commissions help support this blog.
Disclaimer:
This post is for general educational purposes only and does not constitute financial, legal, or tax advice. Always consult with a licensed financial advisor or contact the Social Security Administration for information specific to your situation.
David E. White
Veteran, Author, Blogger, Financial Educator,
Over Twenty Years of Business Ownership Experience
NEW Vision, LLC
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