How Much Monthly Income Does $750,000 Generate in Retirement?
The three ways to turn $750k into a paycheck
| Method | Est. monthly income | Touches principal? | Can you outlive it? |
|---|---|---|---|
| Interest only (~4% fixed) | ~$2,475 | No | No — principal stays |
| 4% withdrawal rule | ~$2,475 | Yes, slowly | Possibly, if markets drop early |
| Lifetime income annuity (age 65) | ~$4,350–$4,800 | Converts it | No — guaranteed for life |
Figures are illustrative for 2026 rate conditions and a 65-year-old; your actual numbers depend on age, rates, and options. Run yours below.
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. Converting a portion to guaranteed lifetime income pays more each month and removes the "what if I live to 95?" worry, at the cost of giving up that lump sum.
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. Building an "income floor" you can't outlive is how many retirees protect against it.
See what your number actually is
Enter your balance, age, and goals — our free Income Floor Calculator shows how much reliable monthly income your savings can produce.
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. Converting part to guaranteed income removes the longevity risk on that portion.
Is interest-only or an annuity better for $750k?
Interest-only keeps your principal and flexibility but pays less. A lifetime annuity pays more and can't be outlived, but you give up access to the lump sum. Many retirees blend both — keep some liquid, guarantee the rest.
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.
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.