Is $10 Million Enough to Retire at 60?

Retiring at 60 with $10 million puts you in an enviable financial position. However, even substantial wealth requires careful planning to last through a 30-year retirement. The right strategy depends on how you invest, spend and protect your assets over time. From managing taxes and healthcare costs to keeping pace with inflation, it is critical to understand whether $10 million can help you maintain financial security and peace of mind throughout your retirement.

Ask a financial advisor how to structure your retirement plan to accommodate your future plans.

How Much Income Can $10 Million Generate?

The income that a $10 million retirement portfolio generates all depends largely on how funds are invested. Different strategies offer varying levels of risk, return and portfolio longevity.

Low-Risk Approach (2% to 4% Annual Return)

A portfolio composed mainly of bonds, CDs or money market funds might yield around 2% to 4% annually. That provides $200,000 to $300,000 in income per year. While this approach prioritizes capital preservation, inflation can erode purchasing power over time.

At a 3% withdrawal rate, the portfolio could theoretically last indefinitely, assuming steady returns.

Moderate-Risk Portfolio (4% to 5% Annual Return)

A diversified portfolio with a mix of stocks and bonds might target returns of 4% to 5%. This would generate $400,000 to $500,000 in annual income. Assuming a 4% withdrawal rate, a $10 million portfolio is likely to last 30 years or more.

However, keep in mind that actual longevity depends on both market performance and spending habits.

Aggressive Growth Strategy (6% to 7% Annual Return)

An equity-heavy portfolio aiming for returns of 6% to 7% could produce $600,000 to $700,000 per year.

While this increases income potential, the higher volatility means greater exposure to market downturns. Sustaining this strategy in retirement requires flexibility, especially in years with negative returns.

Annuities (Guaranteed Income)

Using part of the $10 million to buy an annuity could generate fixed lifetime income. A $2 million immediate annuity for a 60-year-old might yield $130,000 to $140,000 annually, depending on the provider and terms. This can supplement other investments and help smooth cash flow throughout retirement.

Planning for Expenses

Retiring with $10 million at age 60 offers financial flexibility, but it is still important to understand how spending can evolve over time.

Your earlier years of retirement often involve higher discretionary spending. Meanwhile, later years may see rising healthcare costs with potential long-term care needs.

Lifestyle and Discretionary Spending

Many retirees spend more in earlier years on travel, hobbies, home upgrades or helping adult children. Spending $300,000 to $400,000 per year is generally sustainable for a $10 million portfolio, particularly with a balanced asset mix. However, large one-time purchases or ongoing support for family can accelerate portfolio drawdown.

Healthcare Costs

Healthcare is a long-term expense that increases with age.

According to Fidelity’s 2025 estimate, a 65-year-old couple that retired in 2025 can expect to spend about $345,000 on healthcare throughout retirement. ¹ This figure includes premiums, deductibles and out-of-pocket costs but excludes long-term care.

Those retiring at 60 will likely face additional expenses in the five years before Medicare eligibility begins. You may need to explore private insurance or ACA marketplace plans during that gap.

Long-Term Care

Long-term care can be one of the most significant and unpredictable costs of retirement.

Based on Genworth’s 2025 data, the national median annual cost for a private room in a nursing home is $355 per day, or $129,575 per year. ² Depending on the duration and level of care needed, these costs can quickly add up.

Some retirees choose to self-insure using part of their portfolio, while others explore long-term care insurance or hybrid life insurance policies with care riders.

Taxes and Inflation

Taxes can significantly impact a retirement portfolio, especially those generating $400,000 or more in annual income. Common sources of retirement income include capital gains, dividends and tax-deferred accounts like IRAs and 401(k)s. Each of these has different tax treatments. 

Retirees typically pay either 15% or 20% in taxes on long-term capital gains and qualified dividends, with the exact rate based on their income bracket. The IRS taxes withdrawals from traditional retirement accounts as ordinary income. These withdrawals could push retirees into the 32% or 35% tax bracket at that income level.

At higher income thresholds, retirees may also be subject to the 3.8% Net Investment Income Tax (NIIT). ³ This applies to investment earnings once the modified adjusted gross income (MAGI) rises above $250,000 for married couples filing jointly.

Additionally, Medicare surcharges (IRMAA) can raise Part B and Part D premiums once income passes certain levels, further eroding after-tax income.

Accounting for Inflation

Inflation presents another layer of complexity. Even with a $10 million portfolio, rising prices reduce purchasing power over time.

If inflation averages 3%, today’s $400,000 in spending would need to grow to over $720,000 in 20 years to keep pace. This requires a growth-oriented investment strategy, even in retirement, to keep pace with inflation without drawing down principal too quickly. To manage these risks, many retirees use tax-efficient withdrawal strategies, such as drawing from taxable accounts first or using Roth conversions to smooth future tax liabilities.

Accounting for inflation and adjusting withdrawals over time can also help protect long-term spending power.

Planning Your Estate

A $10 million portfolio requires a structured estate plan to manage taxes, transfers and long-term wishes.

First, retirees should establish a will and a revocable living trust. This will direct the distribution of assets after your death so your heirs can avoid probate. Naming beneficiaries on retirement accounts and insurance policies can streamline transfers and reduce delays.

With a $10 million nest egg, estate tax and gift taxes may not seem like immediate concerns, but they can still come into play, especially if the portfolio grows significantly over time.

The federal estate tax exemption is $15 million per person in 2026, meaning a single retiree would avoid federal estate tax. Several states levy estate or inheritance taxes that kick in well below the federal exemption. Retirees should consider how residency, future asset growth and tax law changes might affect the estate’s eventual tax liability.

When to Know You’ve Saved Enough for Retirement

Determining whether you’ve saved enough for retirement isn’t just about reaching a specific number. It’s about knowing your savings can comfortably sustain your desired lifestyle.

A $10 million portfolio may sound more than sufficient, but how far it goes depends on your spending habits, healthcare needs, tax strategy and investment returns over time. The key is ensuring your income streams can cover your expenses while still leaving room for inflation, emergencies and long-term care.

Financial experts often recommend running detailed retirement projections to estimate how long your money will last. Be sure to factor in several retirement income sources:

• Expected annual withdrawals
• Social Security benefits
• Potential pension income
• Investment growth

A sustainable withdrawal rate, typically 3% to 4% per year, can help preserve your principal and maintain financial stability for decades of retirement. Ultimately, you’ll know you’re ready to retire when your savings can consistently generate enough income to meet your needs without undue financial stress.

Working with a financial advisor can help you test different scenarios and account for risk. Together, you can build a retirement plan that gives you confidence and flexibility at every stage of life.

Social Security Strategy

Even with $10 million, Social Security is worth thinking about strategically. The benefit itself may represent a small fraction of your total income. However, it will have bearing on your taxes, your portfolio withdrawal rate and how long your savings last.

If you retire at 60, you’re at least two years away from the earliest claiming age of 62. It also puts you seven years away from full retirement age, which is 67 for anyone born in 1960 or later. That means you’ll need to fund at least two years of retirement entirely from income sources like your portfolio or pension before Social Security kicks in.

Claiming at 62 comes with a permanent reduction of up to 30% compared to your full retirement age benefit. On the other hand, delaying past 67 increases your benefit by roughly 8% per year until age 70, thanks to delayed retirement credits. ⁴

For instance, take a retiree whose full retirement age benefit is $3,500 per month.

Over a 20- to 30-year retirement, that gap adds up to a significant amount of lifetime income.

For someone with a $10 million portfolio, the decision to delay isn’t about needing the money right away. It’s about using the years between 60 and 70 to your tax advantage. During those years, your income may be lower than it will be once required minimum distributions (RMDs) begin at age 73.

That creates a window to draw down taxable accounts, execute Roth conversions at lower tax rates and reduce the size of tax-deferred accounts before RMDs force larger withdrawals. Claiming Social Security too early can fill up that low-income window and reduce the opportunity for these moves.

If you’re married, spousal and survivor benefits add another dimension. When one spouse has a significantly higher earnings record, they can delay until age 70 for a larger survivor benefit. If the higher earner passes away first, the surviving spouse receives the higher of the two benefits. For couples with a large age gap or a significant difference in earnings history, this can provide meaningful long-term protection.

It’s also worth noting how Social Security interacts with tax and Medicare dynamics. Up to 85% of your Social Security benefits become taxable once your combined income exceeds $44,000 for married couples filing jointly.

With $10 million generating $400,000 or more in annual income, your benefits will almost certainly be fully taxable. Even so, an additional $40,000 to $55,000 per year from Social Security reduces the amount you need to pull from your portfolio. This can slow the drawdown of your invested assets and extend their longevity.

Bottom Line

Retiring at 60 with $10 million offers flexibility, but it still calls for smart planning. How long the money lasts, and how comfortably it supports future goals, depends on factors like your investment mix, spending habits, tax strategy and healthcare decisions. With careful attention to these moving parts, retirees can shape a financial path that supports both day-to-day living and longer-term priorities.

Retirement Planning Tips

• Consider working with a financial advisor who specializes in comprehensive wealth management. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Consider spreading your retirement savings across different account types, traditional IRAs and 401(k)s for tax-deferred growth, Roth IRAs for tax-free withdrawals and regular brokerage accounts for added flexibility. Having money in multiple “tax buckets” gives you more options when it comes time to withdraw funds, letting you better manage your tax bill as your income or tax rules shift over time.

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