Retire with $4 million: a complete guide

1 min readLast updated June 4, 2024by Rachel Carey

$4 million is an undeniably impressive retirement savings amount. This article tells you what you need to know to confirm it’s enough for your unique needs.


  • Even if you’re planning a lavish retirement lifestyle, $4 million will successfully fund your retirement.

  • $4 million will last a long time in retirement and could even mean you could retire early.

  • Your tax bracket and how much you pay should also be considered when planning how much money you’ll need for retirement.

  • If you want to get ready for retirement, a trusted financial advisor can help you manage your finances and ensure your retirement savings align with your goals.  

Is 4 million dollars enough to retire on? 

The chances are very high that 4 million dollars will successfully and effectively fund your retirement, even if you’re planning for a more lavish lifestyle as a retiree than most.  

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If you leave work at 61, the average retirement age as of the latest Gallup data, you’ll have more than enough to see you through to a life expectancy of 90 or even 100. Across 29 years, $4 million could equate to a generous $11,494 a month.  

If you plan to retire early, you’ll have less to work with but still have plenty of room to spend as you wish while your considerable fortune grows. Interest alone will provide a significant income at this level of wealth. Plus, if you can purchase an annuity with a lifetime income rider using a portion of your $4 million, you’ll be guaranteed a regular income no matter what. 

Consulting with an experienced financial advisor can provide tailored advice to assess your retirement needs based on your situation. Match with a financial advisor below.

How long will $4 million last in retirement?  

$4 million is a nest egg many can only dream of, and it should last you a long time, especially if you’re somewhat careful about how you save and spend. With this much money to fund you as a retiree, you could even explore early retirement options from about age 30 and find them entirely possible.  

As a starting point for answering this question in your specific situation, it’s recommended to calculate how much you’ll need each month as a retiree based on your planned lifestyle and various expenses. By doing this, you’ll soon see if $4 million is enough. Don’t forget to account for: 

  • Possible future healthcare costs, especially while below the minimum Medicare age  

  • Any additional retirement income not included in the $4 million figure, like Social Security 

  • Any dependents you’ll still be caring for and supporting as a retiree 

  • The cost of living and tax system in the place where you choose to retire 

  • How your millions will be saved and invested once you’re retired/whether they’ll continue to grow  

  • Your likely life expectancy and retirement ag

What is the average retirement savings in the US? 

The average amount that you’ll find in a US taxpayer’s retirement savings pot has been growing over time. The Economic Policy Institute now puts the mean household figure at ​​around $100,000, rising to almost $250,000 for savers between the ages of 56 and 61. As you may have expected, this is well under the $4 million you plan to retire with and indicative of the excellent position you find yourself in.  

However, it’s important not to assume this average is a place to aim for. Yes, you’re in a good position, but there is perhaps not as much of a gulf between your savings and the ideal retirement amount as you think.  

The Federal Reserve’s Report on the Economic Well-Being of U.S. Households 2022 tells us that just 31% of non-retirees feel their retirement savings are “on track,” a notable confidence drop compared to 2017. Many would like to save more but are, for one reason or another, unable to. Also included in the report is the following data set: 

Age groupPercentage with any retirement savingsPercentage who feel their retirement savings are on track
18–29 62% 30%
30–44 75% 39%
45–59 84% 45%
Over 60s 87% 52%

What are the retirement income taxes applicable to retirees with $4 million? 

Taxation should be an essential consideration as you determine how much income you’ll have access to as a retiree.  

There are seven federal income tax brackets as of 2023, ranging from a bottom rate of 10% to a top rate of 37%. You’ll likely fall into one of the higher brackets, making proper tax planning essential to avoid unexpected bills. Plus, you’ll need to remember: 

  • Your Roth accounts will be after tax, so distributions as a retiree will come to you tax-free. 

  • If you’ve made any investment gains over a year or more, you’ll be taxed on these as long-term capital gains rather than traditional income. 

  • At least 15% of your Social Security entitlement will be tax-free. 

  • State-level income tax will also be levied in most places in the US. 

Can you retire at 50 with 4 million dollars? 

According to a 2023 NerdWallet survey, 25% of adults want to retire before age 50. While this may not be an option for many, it could be feasible for you with $4 million in your pocket. 

In short, yes, there is much potential for early retirement at 50 or even 40 if you have $4 million set aside for your retirement. As for whether it will be possible in your particular circumstances? It all comes down to how much you comfortably need as an income yearly and monthly.  

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Is $4 million enough to retire at 60?

If you want to retire at 60, $4 million should be more than enough money.

Let’s consider the following calculation: if you retire at 60 with $4 million and want this money to last until you reach the age of 80, you will receive an annual income of $200,000. This equates to a monthly income of $16,666,

This monthly income – which does not factor in income from other sources or how much you must set aside for taxes – should be able to provide you with a comfortable retirement lifestyle.

If you need the money to last even longer, until the age of 90, for example, you will still be left with a sizable chunk of money each year - $133,333.

How do I increase my retirement savings? 

In all likelihood, $4 million will be more than enough for you as a retiree, and you’ll be able to pass a good amount on to your beneficiaries.  

But, if you need to save even more, know that your existing lump sum can do much of the work for you, if invested correctly. 

Seeking expert financial advice from an experienced professional who understands your situation, preferences and priorities will help you grow your money.  

The bottom line 

There will always be much to consider as you plan your retirement and settle on your ideal savings amount.  

With careful planning and intelligent investing of your existing wealth, you could leave the working world early and carry yourself quite happily through to 90 years. 

For help with any retirement or estate planning aspect, don’t hesitate to connect with an experienced, qualified ​​financial advisor via Unbiased. Connect with an SEC-regulated ​​advisor here.   

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.

Looking to retire on $4 million?

A financial advisor can build a retirement plan tailored to you