How long will $2M last in retirement?
$2M can last 30+ years at a sustainable 4% withdrawal ($80,000/yr) — but at a heavier 6% draw ($120,000/yr) it lasts only about 20 years. How long your money lasts comes down to how much you spend, taxes, and market luck.
How long $2M lasts at each spending level
Retiring at 60 with $2M invested (60% taxable / 30% traditional / 10% Roth), 6% nominal return, 3% inflation, no Social Security:
| Rate | Spend / yr | Spend / mo | How long it lasts |
|---|---|---|---|
| 3% | $60,000 | $5,000 | 30+ years (to 95) |
| 4% | $80,000 | $6,667 | 30+ years (to 95) |
| 5% | $100,000 | $8,333 | ~27 years (to 87) |
| 6% | $120,000 | $10,000 | ~20 years (to 80) |
| 7% | $140,000 | $11,667 | ~16 years (to 76) |
Three things that change the answer
- Taxes. A dollar in a traditional 401(k) isn't a dollar you can spend — withdrawals are taxed as ordinary income. This projection accounts for that, which is why real-world longevity is shorter than a naive "$2M ÷ annual spend."
- Sequence of returns. A market crash in your first few retirement years does far more damage than the same crash later — you're selling assets while they're down. Two retirees with identical average returns can get very different lifespans from the same $2M.
- Social Security, pensions, and part-time income. Every dollar of outside income is a dollar you don't withdraw. Adding Social Security alone often turns a "runs out" plan into one that lasts indefinitely.
These figures assume you retire at 60. Retire earlier and the same $2M must stretch over more years; retire later (or add Social Security) and it lasts longer. Model your exact situation in the calculator.
At this level, taxes and RMDs bind before longevity does
With a larger balance, running out of money is rarely the central problem. The binding constraint shifts to taxes. Required minimum distributions begin at 73, or 75 for those born in 1960 or later, and they force money out of tax-deferred accounts on a schedule the government sets rather than one you choose. On a sizable balance those forced withdrawals can push income into higher brackets and raise the cost of Medicare, so the real work is smoothing the tax bill across decades rather than stretching the last dollar.
Partial Roth conversions in the lower-income years between retirement and RMD age, along with coordinating which accounts you draw from first, are the main levers.
None of that removes the long-horizon risks. A multi-decade retirement still warrants a dedicated reserve for inflation and long-term care, since those late costs are large and hard to predict. Delaying Social Security remains the cheapest longevity insurance available: it buys inflation-protected lifetime income at a better rate than any commercial product.
Common questions
How long will $2M last in retirement?
At a sustainable 4% withdrawal ($80,000/year), $2M lasts 30+ years. At a 6% draw ($120,000/year) it lasts about 20 years. The exact answer depends on your spending, taxes, and market returns.
What's a safe withdrawal rate for $2M?
The classic "4% rule" — $80,000/year from $2M, rising with inflation — has historically lasted a 30-year retirement. Retiring early (a longer horizon) argues for a slightly lower rate closer to 3.5%.
Does this include taxes?
Yes. The projection applies the federal (and where relevant, state) tax you'd owe withdrawing from taxable, traditional, and Roth accounts, so the longevity figures are realistic rather than a simple division.