How Much Monthly Income Does $750,000 Generate in Retirement?
Four ways to turn $750k into a paycheck
| Method | Est. monthly income | Touches principal? | Can you outlive it? |
|---|---|---|---|
| Interest only (~4% fixed) | ~$2,500 | No | No, principal stays |
| 4% withdrawal rule | ~$2,500 | Yes, slowly | Possibly, if markets drop early |
| Treasury or CD ladder, spent down over 30 years (~4%) | ~$3,581 | Yes, on a schedule | Yes, it ends at year 30 by design |
| Delay Social Security to 70, spend savings first | Varies | Yes, early on | No, Social Security pays for life, adjusted for inflation |
How these are figured (checked October 10, 2026): interest only = balance x 4% / 12. Spend-down = the level monthly payment that reaches $0 after 30 years at 4% (standard loan math). The 4% rate is an assumption, not a quote. For reference, U.S. Treasury par yields on October 9, 2026 were 5.02% (5-year), 5.24% (10-year) and 5.60% (30-year) (U.S. Treasury, daily par yield curve). A higher rate raises these numbers and a lower rate cuts them. The 4% withdrawal rule comes from William Bengen's 1994 study of 30-year retirements (Journal of Financial Planning, October 1994). Social Security grows 8% a year for each year you wait past full retirement age, up to age 70, if you were born in 1943 or later (SSA, delayed retirement credits). All figures are before tax and inflation. Run your own balance in the retirement calculator.
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Why the same $750,000 gives such different answers
The gap comes down to one trade-off: access vs. certainty. Keeping your money liquid (interest or the 4% rule) means you stay flexible and leave a legacy, but you carry the market risk and the risk of living longer than your money. Spending principal down on a schedule pays more each month but leaves less behind, so many retirees answer the "what if I live to 95?" worry by delaying Social Security instead, which pays for life and rises with inflation.
The hidden risk most retirees miss
A big market drop in your first few years of retirement does far more damage than the same drop later. This is called sequence-of-returns risk. It's why two retirees with identical $750k balances can end up in very different places. Keeping two to five years of withdrawals in cash or a short bond or CD ladder, so you never have to sell stocks in a downturn, is how many retirees protect against it.
See what your number actually is
Enter your balance, age, and goals, and our free Retirement Calculator shows how long your savings last at your withdrawal rate.
Run my income number →Frequently asked questions
Will $750,000 last through retirement?
At a 4% withdrawal ($30,000/year), it's designed to last ~30 years, but an early market downturn can shorten that. Delaying Social Security, which pays for life, reduces that longevity risk.
Is interest-only or spending down principal better for $750k?
Interest-only keeps your principal and flexibility but pays less. Spending principal down on a schedule pays more, but leaves less for heirs and can run short if you live past the plan. Many retirees blend both and delay Social Security, which pays for life.
How much income does $500k, $1M, or $1.5M generate?
Roughly proportional: scale the figures above up or down with your balance. See our companion guides, or run your exact balance in the calculator.
Want to run these numbers for your own situation?
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The Retirement Literacy Foundation is a 501(c)(3) non-profit. This guide is general financial education, not individualized investment, tax, or insurance advice. Figures are illustrative and change with interest rates and your personal situation. Consider speaking with a licensed professional before making decisions.
Hans Goldstein, EA
Founder & Executive Director · Retirement Literacy Foundation, a 501(c)(3) non-profit
Admitted to practice before the IRS
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For a larger balance, see how much monthly income will $1 million generate.