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How To Retire In 10 Years With A Million (It’s Possible!!)

Looking to retire soon and enjoy your golden years? If you’re trying to figure out how to retire in 10 years with a million or less, it’s possible! However, there will be a few things that you need to do first. Let’s talk about how you can retire with 1 million or less in the bank in just a decade, and still live the good life!

Related: Can I Retire on 750k? (…And, Can You Do It In Luxury??)

Can a person retire comfortably with 1 million dollars?

Is it possible to retire on 1 million dollars?

And is it actually true? Can a person retire comfortably with 1 million dollars?


There are many retirees who have an average of about $700,000-$1 million and are doing very well.

How to Retire in 10 Years With a Million Dollars However, it’s also important to note HOW you want to live.

  • What do your current bills look like?
  • Would you want to live a more luxe life?
  • Would you move overseas to cut costs and still have luxury?

These questions will determine how much you’ll need and if a million is enough.

Related: Wondering How Much Money You Need to Retire? (The Formula is Easy!!)

How much money does the average American retire with?

The average American, if retiring around 65, has about $426,000 saved or invested. This may seem low, but remember, this is the average. This accounts for both the 1% and those living below the poverty line when retiring.

Related: Retirement Savings by Age – Are You on Track?

What is the average 401k balance for a 65-year-old?

The average 65-year-old has about $182,100 in their 401k account. Just like the average saved, remember that this number can and does fluctuate.

Oh, and just because this is the average doesn’t mean that this is what you should be targeting. PLEASE save up more than the average in your retirement! I doubt you’ll ever regret it!

Related: Is It Enough to Save 15% of Your Income for Retirement?

Can I retire at 60 with 500k?

You sure can! Of course, you’ll need to find out how that looks for you, and how much you can withdraw realistically each year.

Keep in mind that the average American lives to 79. And, you could also live much longer than that. Would you have enough for upwards of 30-35 years if you retired with $500k?

Related: Can I Retire On 500k Dollars? (Will I Run Out of Money…??)

Can you live off 1 million in retirementCan you retire at 60 with a million dollars?

Yes! Just like with 500k, it’s important to keep in mind your lifestyle and how much you’ll be spending during retirement. But, you could certainly retire early and still live well on a million dollars.

However, if you plan to retire early, also note what you’ll do for healthcare, withdrawing money, and more. Many government programs penalize you for using benefits when under the age of 65.

Related: How Much Money Do You Need To Retire At 60?

How much interest will 1 million dollars earn?

The average annual rate of return has been about 8% over the last 50 years. So with that in mind, $1 million would essentially earn $80,000 every year.

If you could live on less than that every year, and let your money grow, you could stretch that million throughout retirement.

Related: What Is The Interest on 1 Million Dollars? (Is It Enough to Retire??)

Can you live off dividends of 1 million dollars?

What about dividends? People seem to be raving about them these days. Can you live off dividends of 1 million dollars?

If what you invested in dividend earning stocks, and they make up for your needs for a year, then yes. 

High-earning dividend stocks can average between 4%-6%, which would earn you $40k-$60k a year, so if you can live on that amount, then certainly you can live off the dividends!

Remember though, not all stocks pay dividends. 

If you want most of your portfolio to include dividends that you can live off of in the future, that’s possible! Just remember to choose stocks that offer them, and be sure to talk to a financial planner about how much you’ll need.

Related: 4 Easy Ways To Build Your Nest Egg (So You Can ACTUALLY Retire!)

born a millionaireHow long will 1 million in retirement last?

Sooo…Is a million dollars really enough? How long will 1 million last in retirement?

Essentially, if you withdraw less than the interest earned each year, you could make your million last for the rest of your life. But, the market can be wonky (there are years where it CAN go down, and down severely!), and sometimes we need more.

Wondering how to retire with a million dollars?

How much can you actually spend and make a million dollars last?

Let’s say you have an average spending rate. If you wanted to live on about $60,000 a year, one million dollars would last a little over 30 years.

How Much Do I Need to Retire in 10 Years?

If you purely put your savings under you mattress and don’t invest it, you’ll need to earn $100,000 a year to have a million dollars in 10 years. 

But, the good news is, you don’t have to do that!

There are so many great investing options out there, and if you invest properly (and those investment cooperate), you could save far less than $100,000 per year and still end up with a million dollars at the end of 10 years! 

How to earn 1 million dollars in just 10 years

If we just cut to the chase here…if you save just $5,000 a month (roughly $60k a year) and earn 10% on your money each year, you’ll have $1 million in 10 years!

Want to know more about how to save up that much money so you can retire with a million dollars in 10 years? Then skip down to the section, “How to retire in 10 years with a million dollars”.

Make 2 million dollars with a budgetCan You Retire After 10 Years of Work?

Some people are 50 years old right now and they’re wondering if they can retire in 10 years. But, perhaps that’s not you!

Maybe you’re 25 years old and just starting your career. You’re wondering if you can bust your butt, save up a bunch of money, and then retire in a decade. 

So what’s the answer to that? Can you retire after 10 years of work?

The answer is “yes”. In fact, Mr. Money Mustache proved this roughly a decade ago when he himself retired in his early 30s. 

Here’s the simple steps to retire after 10 years of work:

  • Get a job earning a decent amount of money each year
  • Live on just 33% of your income, save and invest the rest
  • Then, if you continue living that same lifestyle for the rest of your life, you can retire after 10 years and not run out of money. 

Don’t believe me? Here’s the math.

The big catch to all of this is that you’re enslaving yourself to a frugal lifestyle…forever. If you’re okay with this, then you can absolutely retire after just 10 years of work. If not, then you may want to work longer (either that, or earn a MASSIVE amount of money through passive income or the sale of a business).

How To Retire In 10 Years With A Million Dollars

Now that you know it’s possible to retire in 10 years with a million dollars, let’s talk about how to actually get there!

(Of course…if you’re starting from scratch, you’re likely wondering how to retire in 10 years with no savings. It’s possible! Keep reading!)

While that can seem daunting, most people have some type of savings or 401(k) to throw into the mix. And once you start saving, it’s easy to watch the money continue to compound and grow for you. 

Study the steps below for how to retire with 1 million in 10 years. 

Piggy bank with moneyIncrease Your Savings Rate

First things first, you need to increase how much you save and invest. The longer your money has a chance to accumulate and compound, the better off you are in retirement.

Of course, it’s best to start investing as soon as possible. But don’t think that you can’t start at any age! There are many people who start saving later in life and are still able to become millionaires.

How to increase your saving and investments

To increase your investments, you can do this in a few different ways.

First, you can contribute to your 401k (if applicable). It’s even better if your employer matches some, or all, of your contribution percentage. But even if they don’t, saving in a 401k is easy, and you can save upwards of $20,500 a year as of 2022.

The second option is a Roth IRA, which you can have in addition to a 401k. As of 2022, you can contribute $6,000 in a Roth IRA.

If you’re over a certain age, you can add more to both your 401k and Roth IRA as part of a “catch-up” plan.

Self-employed? No problem.

Set up a Solo 401k and a SEP IRA. But be sure to talk to a CPA and financial advisor to see how much to contribute and what would work best for you and your business.

Of course, you can also start investing in passive income resources, and buy individual stocks, bonds, mutual funds, and more.

Related: How Much Should I Have In Retirement at 35 Years Old?

Start Earning Passive Income

Wondering how to retire in 10 years with real estate? Or with passive income in general?

This is possible too!

Think about it this way… with passive income, you will use your retirement funds less, or not at all. For example, if your passive income sources earn you $40,000 a year, and you can live off of that, you won’t have to withdraw from your investments.

Here are just a few ways to earn passive income:

  • Own property that earns you money (Airbnb, rental properties, etc.)
  • Own stocks that pay dividends
  • Buy a turnkey business (like a laundromat or self car washing business)
  • Peer-to-peer lending
  • Invest in REITs

And there are so many more ways to earn passive income too. Don’t just stop with these options. Figure out what works best for you, and what will earn you what you need, and invest in that.

Related: Passive Income Examples (Increase Earnings WITHOUT More Work)

smart investment optionsInvest The Dividends Now

If you decide to invest in stocks that pay dividends, go ahead and invest those dividends back into more stocks now. You can live off of them later, but right now, you want to invest and save as much as possible.

Sure, it may be just a couple of dollars here and there at first. But money is money. And by reinvesting, you’re not using more money from your own pocket to grow.

Pay Off Debts

Even if you’ve saved a million dollars, it won’t make a big difference if you’re using some (or most) of it to pay off debts.

Instead, focus on paying them off now, if possible. This can even include your mortgage if you plan on retiring in the same home.

Related: How to Pay Off a Mortgage Early (I Did It in 11 Months!)

Now, this isn’t to say that you can’t have debt in retirement. Many people do. But, it can become a strain on your finances. And, if you’re not working, it can easily drain your account if you’re just paying the minimums on your loans year after year.

Why not go into retirement completely consumer and student loan debt-free?

Of course, you may or may not have a mortgage, but the less debt, the better.

There are many resources to help you pay off your debt too, and many different ways to do it.

  • You could try the debt snowball; paying off the smallest debts first and then the largest.
  • Or, you could try the debt avalanche; paying off the highest interest debts first, and working your way down.

The key is to pay off as much as you possibly can before retirement. That way, less money is coming out of your pocket for things you purchased or used years ago.

RelatedThe Best Debt Snowball Excel Template (And It’s FREE!!)

How to Retire in 10 years with a Million — LIVE SIMPLY

One BIG thing about retiring in 10 years with a million dollars is to live simply.

Yes, you could live in luxury during retirement (especially if you save 5 million dollars or more). But, living lavishly means more money being spent every month, which means less money that will be earning interest in your later years.

How to retire in 10 years with a million - live frugallySo, if you’re looking to be alive another 30+ years, that money may run out before you’ve finished your retirement.

If you want to live a more lush lifestyle, try to find a place in the world where your money will stretch a little farther.

That way, you can get the best of both worlds — opulence, and affordability.

Related: Top 5 Best Places to Retire Outside the USA

Otherwise, it’s okay to live simply in retirement.

  • Rent or buy a nice condo
  • Check out the free activities in your area
  • Learn some new skills and hobbies just for the heck of it

And remember, you don’t have to impress anyone in your golden years (or at all).

Related: What Will It Cost to Live When You Retire? (Inflation is a Killer…)

Bottom Line: How To Retire In 10 Years With A Million

As you can see, when it comes to how to retire in 10 years with a million, it’s simpler than it seems.

Consistency, dedication, and time are really all that’s needed.

And, that million can stretch far if you know how to spend it (or rather, NOT spend it! ;)).

So what do you say, ready to plan on retiring a millionaire? You can do it!!

Investing Money Passive Income Retirement Save Money

AUTHOR Kimberly Studdard

Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn't spending time with her daughter and husband, or reading her growing pile of horror books, you'll find her working on her HR degree and working towards FIRE.

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