You have saved $500,000 for retirement. You plan to withdraw $2,500 every month to cover your living expenses. Will your money last 15 years, 20 years, or longer?
The answer depends on more than your savings balance. Your monthly spending, investment returns, inflation, and unexpected expenses all affect how long your retirement money may last.
Our retirement savings calculator helps you estimate how long your money could support your withdrawals. Adjust the numbers to explore different scenarios and understand how your decisions may affect your retirement years.
Remember, this is an estimate, not a guarantee. Investment returns change from year to year, and actual retirement expenses are difficult to predict.
Our how long will my retirement savings last calculator helps you compare different withdrawal amounts and see how changing your assumptions affects the estimate.
How Long Will My Retirement Savings Last?
Estimate how long your retirement portfolio could support your withdrawals. Change your savings, spending, investment return and inflation to explore different scenarios.
Your estimate will appear here.
| Year | Start balance | Withdrawals | End balance |
|---|---|---|---|
| Your yearly projection will appear here. | |||
How to Use the Retirement Savings Calculator
Start by entering a few details about your retirement finances.
To use the how long will my retirement savings last calculator, enter your current retirement balance, planned monthly withdrawals, and assumptions about investment returns and inflation.
- Retirement savings: Enter the amount you currently have invested or set aside for retirement.
- Monthly withdrawals: Enter how much you expect to take from your savings each month to pay for living expenses.
- Annual investment return: Enter your assumed annual investment return. This is an estimate, not a guaranteed rate.
- Annual inflation: Enter your assumed inflation rate to see how rising prices may affect your spending.
- Inflation-adjusted withdrawals: Choose whether your withdrawals should increase with inflation each year.
- Additional monthly contributions: If you are still adding money to your retirement portfolio, enter your expected monthly contribution.
Click the calculate button to see the estimated time until your savings run out, along with a yearly projection of your portfolio.
For a more useful estimate, try changing one assumption at a time. For example, see what happens if you withdraw $2,000 per month instead of $2,500, or if your investment return is lower than expected.
Example: How Long Will $500,000 Last in Retirement?
Suppose you retire with $500,000 in savings and plan to withdraw $2,500 per month.
Here are the assumptions for this example:
| Retirement detail | Assumption |
|---|---|
| Starting retirement savings | $500,000 |
| Monthly withdrawal | $2,500 |
| Annual withdrawals initially | $30,000 |
| Assumed annual investment return | 5% |
| Assumed annual inflation | 2.5% |
At a withdrawal rate of $30,000 a year, you would initially take out 6% of your starting retirement savings annually.
That does not mean your money will necessarily last a particular number of years. Your remaining balance may continue earning investment returns, but inflation can increase the amount you need to withdraw. Market losses could also reduce your portfolio at an inconvenient time.
Use the calculator with these assumptions, then try a lower withdrawal amount or a different return rate to see how the estimated outcome changes.
The main lesson: the amount you withdraw and the returns your portfolio earns can make a substantial difference to how long your retirement savings last.
What Determines How Long Your Retirement Savings Will Last?
Several factors work together to determine whether your retirement portfolio can support your spending.
1. Your monthly withdrawals
Your withdrawal amount is one of the most important factors you can control.
Consider two people who each retire with $500,000. One withdraws $2,000 per month, while the other withdraws $3,000.
The second person takes $12,000 more from savings during the first year. If the difference continues, the portfolio has to support a much higher level of spending.
Of course, spending less is not always easy. Housing, healthcare, insurance, transportation, and other essential expenses may leave limited room for reductions. The goal is to understand how your spending level affects your retirement plan.
2. Investment returns
Your savings may continue to earn returns after you retire if you keep some of your money invested.
Positive returns can help offset withdrawals. However, returns are not guaranteed, and investments can lose value.
A calculator that assumes a steady 5% return simplifies what happens in real markets. Actual returns may be higher or lower, and the order in which good and bad years occur can make a significant difference.
For example, substantial investment losses early in retirement can be particularly damaging when you are also withdrawing money. You may have to sell more investments to fund the same expenses, leaving less invested to participate in a future recovery.
This is one reason a single average return should not be treated as a reliable prediction of your retirement outcome.
3. Inflation
Inflation means that the same amount of money buys less over time.
Imagine that your retirement expenses are $3,000 per month today. If prices rise, maintaining the same lifestyle may require a larger monthly budget in future years.
At an assumed inflation rate of 2.5%, something costing $1,000 today would cost approximately $1,280 after 10 years if that rate continued.
This is why a retirement plan that ignores inflation may overestimate how comfortably your savings can support you.
The calculator lets you choose whether withdrawals increase with inflation. That helps you compare a fixed-dollar withdrawal with a plan that attempts to maintain purchasing power.
4. How long you live in retirement
Retirement can last much longer than people initially expect.
Someone retiring at 60 may need to fund several decades without a full-time salary. Someone retiring at 70 may have fewer years to finance, but could still face substantial healthcare and living expenses.
Planning only for an average lifespan can leave you exposed if you live longer than expected.
Rather than assuming you will need your savings for a fixed period, consider how your plan would hold up if retirement lasted five or ten years longer than anticipated.
5. Social Security, pensions, and other income
Your retirement savings may not be your only source of income.
You might receive Social Security benefits, a pension, rental income, or part-time earnings. These sources can reduce the amount you need to withdraw from your investment portfolio.
For example, if your essential monthly expenses are $4,000 and you receive $2,000 from other income sources, your savings may need to cover only the remaining $2,000, assuming those figures are after accounting for relevant taxes and other costs.
Our calculator focuses on portfolio withdrawals and does not automatically account for Social Security or pension income. Consider those sources separately when estimating your actual retirement budget.
How Much Can You Withdraw From Retirement Savings?
You may have heard of the 4% rule. It is a retirement-planning guideline that suggests withdrawing an amount equal to 4% of your portfolio in the first year of retirement, then adjusting that dollar amount for inflation in subsequent years.
For example, 4% of a $500,000 portfolio is $20,000 in the first year, or about $1,667 per month.
This is a starting point for discussion, not a guarantee that your money will last throughout retirement. The outcome depends on market performance, fees, inflation, your retirement length, and how withdrawals are managed.
Some retirees may need a more conservative withdrawal plan. Others may have additional income sources or flexibility to reduce spending when markets perform poorly.
The most useful approach is to test several withdrawal amounts instead of assuming one percentage will work for everyone.
Three Scenarios Worth Testing
Use the calculator to explore how different retirement choices affect your projected results.
Scenario 1: You withdraw less each month
Start with your planned monthly withdrawal, then reduce it by $250 or $500.
A smaller withdrawal means less money leaves your portfolio each month. Depending on your investment returns and inflation assumptions, that may help your savings last longer.
Consider whether the lower amount would still cover your essential expenses. A retirement budget that looks good on paper is not useful if it leaves out healthcare, housing repairs, or other necessary costs.
Scenario 2: Investment returns are lower than expected
Run the calculator using several return assumptions, such as 3%, 5%, and 7%.
These are illustrative scenarios, not forecasts. A higher assumed return may produce a more favorable projection, but it should not be treated as the outcome you can count on.
Also remember that a steady return assumption does not show the full effect of market volatility. A portfolio that earns a particular average return over time may still experience difficult periods when withdrawals put additional pressure on savings.
Scenario 3: Inflation is higher than expected
Try increasing the inflation assumption.
If you plan to increase withdrawals to keep up with rising prices, your future withdrawals will grow. That may put more pressure on your portfolio than a fixed monthly withdrawal.
Testing a higher inflation rate helps you see why it is important to leave room for uncertainty rather than planning around one perfect set of assumptions.
What If Your Retirement Savings Are Not Enough?
If the calculator suggests your money may run out sooner than you expected, do not panic. The result is a prompt to review your assumptions and consider your options.
Depending on your circumstances, possible steps include:
- Review your spending: Separate essential expenses from discretionary purchases and identify changes that are realistic.
- Consider your retirement date: Working longer, if feasible, may give you more time to save and reduce the number of years your portfolio must support you.
- Review other income sources: Include Social Security, pensions, and other reliable income in your overall retirement plan.
- Reassess your assumptions: Check whether your return, inflation, and withdrawal estimates are reasonable for the scenario you want to test.
- Get qualified guidance: A financial planner can help evaluate taxes, investment risk, healthcare expenses, and withdrawal strategies based on your situation.
Avoid responding to a disappointing projection by simply assuming you will earn a much higher investment return. That can make the calculator look better without making your retirement plan more secure.
Limitations of This Retirement Savings Calculator
Our calculator is designed to make retirement planning easier to understand. It is not a complete financial plan.
The projection uses simplified assumptions about investment returns, monthly withdrawals, and inflation. It does not model the ups and downs of actual markets or the effect of experiencing investment losses early in retirement.
It also excludes taxes, investment fees, Social Security benefits, pensions, and unexpected expenses unless you account for them separately in your inputs.
Your actual results may differ substantially from the estimate. Use the calculator to compare scenarios and identify questions to investigate, not to make an irreversible retirement decision based on a single number.
Frequently Asked Questions
How long will $500,000 last in retirement?
There is no single answer. It depends on your withdrawal amount, investment returns, inflation, and other income sources. Withdrawing $2,000 per month creates a different outcome from withdrawing $4,000 per month. Use the calculator to test your own assumptions.
How do I calculate how long my retirement savings will last?
Enter your current savings, expected monthly withdrawals, investment return, and inflation assumptions into the calculator. The result estimates how long your portfolio may last under those assumptions, but it cannot guarantee your actual retirement outcome.
How much should I withdraw from retirement savings each month?
Start by estimating your essential expenses, discretionary spending, and income from sources other than your portfolio. Then calculate how much you need to withdraw to cover the difference. The 4% rule is one commonly discussed guideline, but it is not suitable for every retiree or every market environment.
Does the calculator account for inflation?
Yes. You can enter an annual inflation assumption and choose whether your monthly withdrawals should increase with inflation each year. The result is still an estimate because actual inflation will not follow a perfectly steady path.
Does the calculator include Social Security?
No. It estimates how long your entered portfolio may last based on your withdrawals and other assumptions. If you expect Social Security or pension income, account for that separately when working out how much you need from savings.
Can I rely on the estimated retirement date?
No. The estimate depends on the assumptions you enter. Actual investment returns, inflation, taxes, fees, and unexpected expenses can change the outcome. Test multiple scenarios and review your plan periodically.
What if I am still contributing to my retirement savings?
Enter your expected additional monthly contribution. The calculator includes that amount in its simplified projection. If you are still working, remember that your eventual retirement date, future contributions, and spending needs may change.
Final Thoughts
Knowing how long your retirement savings may last is not about finding one perfect number. It is about understanding the relationship between your spending, investments, inflation, and the length of your retirement.
Use the calculator to test different scenarios. Try lower withdrawals, more conservative returns, and higher inflation. Pay attention to how much the results change when you adjust just one assumption.
A retirement plan is more useful when it can handle uncertainty—not only when everything goes according to expectations.
Start with realistic numbers, review your plan regularly, and make adjustments before a small concern becomes a major financial problem.
