Key Numbers and Analysis
What $1 million means for FIRE income and duration
| Question | $1M Generates (4% SWR) | $1M Generates (3.5% SWR) | Verdict |
|---|---|---|---|
| Annual income | $40,000/year | $35,000/year | Enough for frugal retirement |
| Monthly income | $3,333/month | $2,917/month | Tight in HCOL areas |
| With $2K/mo SS at 67 | $5,333/month total | $4,917/month total | Comfortable in many areas |
| Duration without SS | ~40 years (3.5% SWR) | ~50+ years (3.5% SWR) | 3.5% more reliable |
📈$1M Is Not What It Was
In 2000, $1 million at 4% SWR provided $40,000/year — roughly average U.S. income. In 2025, $40,000/year is below median. Inflation has eroded $1M’s FIRE adequacy by 30-40% in purchasing power terms. Target at least $1.2-$1.5M for regular FIRE in 2025.
Scenarios and Comparison
Cost-of-living impact on $1 million FIRE feasibility
| Cost-of-Living Area | Can $1M Support FIRE? | Annual Expenses That Work | Verdict |
|---|---|---|---|
| Rural/Midwest U.S. | Yes comfortably | $28,000-$36,000/year | Solid FIRE |
| Suburban Southeast U.S. | Yes with planning | $32,000-$40,000/year | Workable FIRE |
| Suburban Pacific Northwest | Tight | $38,000-$45,000/year | Lean FIRE territory |
| NYC/SF Bay Area | No — insufficient | $60,000-$90,000/year | Need $1.5-2.5M |
| Southeast Asia / Mexico | Very comfortably | $15,000-$25,000/year | Fat FIRE territory |
Run Your Own Calculation
Enter your specific numbers to get personalized projections.