The $1m isn’t in cash… You forget that the average house price in London is around $900k, and for Sydney it’s $981k.

That means your pool for your car, furnishings, investments etc. are either minimal, or you have a mortgage, and definitely can’t live passively off $30-40k per year unless you’re living in cheaper than average housing (one would call this “not super wealthy”) and definitely not if you’re supporting a family.