From 24/7 Wall St. · AJ Tiarsmith · · 1m 10s
Retirees Now Earn $74k Yearly from $1.5M Without Stocks
Retirees can generate $74,445 annually from $1.5 million in Treasuries before Social Security.
In brief
Retirees can generate $74,445 annually from $1.5 million in Treasuries before Social Security. Government bonds now provide enough income to cover retirement needs without stock market risk. Originally reported by 24/7 Wall St..
Treasury Yields Hit 4.96%
The 10-year Treasury yield reached 4.963% on September 21, 2026, generating $74,445 yearly from $1.5 million.
“For people going into retirement, this is a gift. I mean, I can now take one million in my retirement, pick up five percent a year.”
Tina Trade Ends
The 'Tina trade', where savers pushed into stocks for cash, has reversed as cash markets now yield over 3%.
“The Tina trade is now over because the alternative is I can just sit in cash money markets right now and get over three percent.”
Retirees Benefit from Bonds
Retirees can use Treasury bonds to cover up to 70% of income without stock market risk.
“Now I can go buy Treasury bonds at five percent. I've got to make two percent out of my equity side.”
Tax Advantage for Retirees
Treasury interest is exempt from state and local income tax, improving after-tax returns for high-tax states.
“Treasury interest is taxable at the federal level but exempt from state and local income tax.”
How to Use This Opportunity
Retirees should price their income target first, then use current Treasury yields to determine bond needs.
“Write down the annual dollar figure your plan needs from savings, then work backward at today's Treasury yields.”
Why This Matters Now
The 10-year yield is at the top of its recent range, offering the highest returns in over a year.
“The benchmark ten year treasury yield was four point nine four percent on September seventeenth, two thousand twenty six.”
Retirement Strategy Shift
Retirees can reduce equity risk by using Treasuries for income, freeing up capital for lower-risk allocations.
“The equity side can then take less risk to hit the overall goal.”
What it means
Government bonds now provide enough income to cover retirement needs without stock market risk.
