How long will $1 million remain after you turn 50?

If you’re 50 and living on millions in savings, congratulations! It may take decades of saving and investing in a brokerage account to reach this point. As for how long this will last, there are many factors to consider, including your location, lifestyle, and the overall economy.

Knowing whether you can retire with $1 million is no easy task, especially since it will be many years before Social Security and Medicare kick in. You may have to pay a penalty to access this money before you reach 59 1/2.

Here’s how to find out how long $1 million will last.

What does the 4% rule tell us?

The 4% rule is a great way to estimate how much you can withdraw annually for at least 30 years without running out of money. If you have $1 million, that tells us that you can safely make $40,000 in the first year. You could then confidently continue withdrawing the same amount, adjusted for inflation, for another 30 years or more.

You may be able to withdraw more than 4%; it’s just that the more you take, the more likely you are to run out of money. If you want to withdraw more funds, you may choose a riskier combination of investments in hopes of achieving higher returns. Likewise, a more aggressive portfolio could stretch out to 35 or 45 years.

A financial planner can help you plan how different scenarios might work in your situation. To give you an idea, Fidelity ran simulations of various investment portfolios and market scenarios. He concluded that you would have a 75% chance of stretching a balanced portfolio with a 5.6% withdrawal rate over 25 years. So if you want to withdraw $56,000 in the first year, you can be fairly confident that it will last until age 75.

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How much do you need each year?

We know that $1 million will easily provide an income of $40,000 plus inflation for 30 years or more. To find out how this applies to you, we need to figure out how much you’ll be withdrawing. The gap between your income and expenses is the amount you will need to take out of your investment portfolio.

In terms of expenses, financial planners often estimate that you’ll need about 80% of your current income in retirement. But this logic may not apply at 50 years old. You may find that your post-work lifestyle is similar in terms of costs. If you plan to travel, take up an expensive hobby, or have health problems, it may cost more. When assessing your expenses, consider both your current income and any lifestyle changes.

Calculate your additional sources of income

Social Security is an important source of income for many retirees, but you won’t be able to access it until you’re 62 years old. So it may help to break your planning into two sections: before and after Social Security.

Here are some additional potential sources of income to consider:

• Pension
• Annuities
• Rental income
• Part-time
• Dividend shares
• CDs and savings accounts

Let’s say you plan to spend $7,000 a month and your additional income will be $3,000. You’ll need to withdraw $4,000 per month—$48,000 per year—from your brokerage accounts. With a $1 million portfolio, that’s a 4.8% withdrawal rate. As we saw above, in this scenario you can be relatively confident that your money will last 30 years or more.

$1 million may not last as long as you hope.

Although the CDC states that the average life expectancy in the US is 77.5 years, there is a good chance you will live into your 80s or 90s. So if you stop working at age 50, you may need more assurance that your money will last beyond 30 years.

Moreover, some people’s lives are more expensive than others. Your money will go a lot further if you live in Mississippi rather than Hawaii. Even if you live in a cheap area, you may find that you don’t have enough additional sources of income to supplement your investments.

If you find that you’ll be overusing your investment or want it to last longer, you have a few options. You can cut your expenses, find another source of income, or expand your investment portfolio.

Don’t be afraid to wait a little longer

If you’re worried that $1 million isn’t enough, consider spending a little more time building your fund. Spending a few more years in the workplace will get you closer to accessing Social Security and other retirement benefits.

Your portfolio will also take longer to accumulate value. Additionally, people over 50 can get additional tax benefits by making catch-up contributions to their IRAs. Here we’ve selected some of the best brokerages for IRAs..

At 50, you still have many years ahead of you. If you’ve already saved $1 million, it would be a shame to waste those years worrying about money.