How Long Will $1 Million Last in Retirement? A Realistic Breakdown for 2026

How long will $1 million last in retirement? It’s not a trick question - it’s the one thing people with that kind of savings actually worry about. You’ve worked hard. You’ve saved. You’ve cut back on vacations, skipped upgrades, and lived below your means. Now you’re staring at a number: $1,000,000. And you’re wondering - is that enough? Can you retire at 60? At 65? What if you live to 95? What if inflation spikes? What if you get sick? This isn’t about guesswork. It’s about numbers, rules, and real-world outcomes.

The 4% Rule - Still Valid in 2026?

The 4% rule has been the go-to guideline for decades. It says you can safely withdraw 4% of your retirement savings in the first year, then adjust for inflation each year after. For $1 million, that’s $40,000 in year one. Sounds simple. But here’s the catch: the 4% rule was based on U.S. market data from 1926 to 1995. It assumed a portfolio split of 50-75% stocks and 25-50% bonds. It didn’t account for today’s low interest rates, sky-high house prices, or healthcare costs that have tripled since 2000.

In Ireland, where the average pensioner spends €30,000-€38,000 a year on housing, healthcare, and daily living, $40,000 (roughly €37,000) might feel tight. If you’re in Dublin, rent or mortgage payments alone could eat up €1,500-€2,200 a month. That’s €18,000-€26,400 a year - more than half your withdrawal. Suddenly, $40,000 doesn’t stretch far.

And inflation? In 2024, Ireland’s inflation hit 5.2%. In 2025, food and energy prices stayed stubbornly high. If you withdraw $40,000 in year one and adjust for 4% inflation annually, by year 20, you’re taking out $88,000. Your $1 million is now down to $400,000. That’s not sustainable.

Realistic Withdrawal Rates for 2026

Financial planners today are moving away from rigid rules. A safer starting point is 3.5% to 3%, especially if you’re retiring early or expect high medical costs. For $1 million, that’s $35,000-$30,000 a year. That’s not luxury, but it’s livable - if you’re smart.

Let’s say you’re 65, live in Dublin, and don’t own your home. Your monthly costs:

• Rent: €1,800
• Utilities, broadband, mobile: €200
• Food and groceries: €500
• Transportation (car, fuel, insurance): €300
• Healthcare (private insurance, prescriptions, dental): €400
• Leisure, clothing, gifts: €300
• Home maintenance: €150

Total: €3,650/month = €43,800/year. That’s more than $40,000. You’d need $1.1 million to hit that number at 4%. At 3.5%, you’d need $1.25 million. $1 million? You’re short by €13,800 a year.

That’s why many retirees work part-time. Or downsize. Or move outside Dublin. Or delay retirement by two years to save more.

What Drains Your Savings Fast

It’s not inflation alone. It’s the hidden costs nobody talks about.

• Healthcare: In Ireland, public healthcare is free at point of use - but only if you qualify. Many retirees pay for private insurance (€1,200-€2,500/year) to avoid long waits. Dental, hearing aids, glasses, and mobility aids aren’t covered. A single hip replacement can cost €8,000 out-of-pocket if you’re not insured.
• Home repairs: A 70-year-old house in Dublin needs a new roof, boiler, or windows every 10-15 years. That’s €10,000-€25,000 each time. Most retirees don’t budget for this.
• Long-term care: If you need nursing home care, Ireland charges €1,000-€1,800 per week. That’s €52,000-€93,600 a year. Even with government subsidies, you might pay €30,000+ annually for years. That can wipe out $1 million in under a decade.
• Family support: Many retirees help adult children with rent, weddings, or emergencies. One study found 38% of retirees in Ireland gave over €5,000 to family members in 2024. That’s money you can’t get back.

These aren’t edge cases. They’re the norm.

How to Make Million Last Longer

You don’t need more money. You need a better plan.

1. Delay Social Welfare: If you’re eligible for the State Pension (Contributory), wait until 68 to claim it. In 2026, that’s €14,000/year. Delaying from 66 to 68 increases your payment by 8%. That’s €1,120 extra a year - free money.
2. Downsize your home: Selling a Dublin apartment for €700,000 and moving to a smaller house in Kildare or Galway for €350,000 gives you €350,000 in cash. Invest that. It adds €12,250/year at 3.5%.
3. Use the State Pension as your base: Treat your State Pension as your first expense line. Then use your savings to cover the gap. If your pension is €14,000 and you need €30,000, you only withdraw €16,000 from savings. That cuts your withdrawal rate in half.
4. Work part-time: Even 10 hours a week at €15/hour adds €7,800/year. That’s like having a second pension.
5. Track every euro: Use a free app like Mint or YNAB. Most retirees don’t realize how much they spend on subscriptions, impulse buys, or unused gym memberships. Cutting €200/month = €2,400/year saved.

What If You Live to 95?

Life expectancy in Ireland is 82 for men and 85 for women. But that’s an average. Half of people live longer. If you’re healthy, have no major illnesses, and don’t smoke - you might make it to 95. That’s 30 years of retirement.

At 3% withdrawal, $1 million gives you $30,000/year. Adjusted for 3% inflation, by year 30 you’re withdrawing $73,000. Your savings will be gone by year 27.

At 2.5% withdrawal? That’s $25,000/year. Adjusted for inflation, you’ll be taking $61,000 by year 30. Your savings last 33 years. Barely.

That’s why the safe withdrawal rate isn’t about a number. It’s about flexibility. You need to be ready to cut back if the market drops. Or if your health declines. Or if your child loses their job and asks for help.

Alternatives to Million

What if you don’t have $1 million? You still have options.

• Property: Owning your home outright removes the biggest expense. A €300,000 house in Cork or Limerick is more than enough. You can live on €20,000-€25,000 a year.
• Part-time work: Many retirees in Ireland run small businesses - gardening, tutoring, dog walking, consulting. It’s not about money. It’s about structure, purpose, and extra cash.
• Reverse mortgage: If you own your home, you can unlock equity without selling. In Ireland, this is rare but possible through private lenders. You get monthly payments. The loan is repaid when you die or move out.
• Co-housing: Shared living arrangements are growing. A group of retirees buy a house together, share costs, and split chores. Monthly expenses drop by 40%.

None of these are glamorous. But they work.

Bottom Line: It’s Not the Number - It’s the Plan

$1 million sounds like a lot. But in 2026, it’s not a retirement finish line. It’s a starting point. The real question isn’t “Will $1 million last?” - it’s “How will you live?”

If you’re in Dublin, own no property, and expect to pay for healthcare, transport, and food without help - you’ll need more than $1 million. If you own your home, get your State Pension, work part-time, and avoid big surprises - $1 million can stretch for 30 years.

Don’t fixate on the number. Fixate on the lifestyle. Cut unnecessary costs. Delay retirement if you can. Use your State Pension. Be ready to adapt. That’s how you make $1 million last - not by hoping, but by planning.