Finance

How Long Will My Retirement Savings Last?

Calculate how long your retirement savings will last based on your current income and expenses.

$
$

= $30,000 per year

%
%
%
Your retirement savings will last
26.2 years
Adjusted for inflation and taxes

Your savings cover a typical retirement

26.2 years may be sufficient depending on your age and health. Consider strategies to extend this if you expect a longer retirement.

Annual withdrawal
$30,000
Monthly withdrawal
$2,500
Weekly withdrawal
$577
Daily withdrawal
$82
After-tax real return
3.8%

Balance over time

Starting with $500,000 at 3.8% real return after taxes and inflation.

Want to know how long your retirement savings will last? Our calculator helps you plan your retirement withdrawals by considering key factors like investment returns, inflation, and taxes.

How does this calculator work?

This calculator determines how many years your retirement savings will last based on:

  • Your current retirement savings
  • Your planned withdrawal amount (daily, weekly, monthly, or yearly)
  • Expected investment returns
  • Inflation rate
  • Your tax bracket

Let's explore how each factor affects your retirement savings longevity.

Starting Savings

Your starting savings is the foundation of your retirement plan. This could be money from:

  • 401(k) or IRA accounts
  • Personal investment accounts
  • Savings accounts
  • Other retirement assets

The higher your initial savings, the longer your money can potentially last. However, the relationship isn't always linear due to the effects of investment returns and inflation.

Withdrawal Amount

Your withdrawal amount represents how much you'll need to take out regularly to cover your living expenses. The calculator lets you specify this as a daily, weekly, monthly, or yearly amount.

Consider these when setting your withdrawal amount:

  • Basic living expenses (housing, food, utilities)
  • Healthcare costs
  • Discretionary spending (travel, hobbies, entertainment)
  • Emergency fund needs
  • Other sources of income (Social Security, pension)

Investment Return

Your expected investment return significantly impacts how long your savings will last. The calculator uses your projected annual return before inflation and taxes.

Typical long-term average returns by asset type:

  • Stocks (S&P 500 historical average): 8-10%
  • Bonds: 4-5%
  • Cash/Money Market: 1-3%

Your actual return will depend on:

  • Your asset allocation (mix of stocks, bonds, and cash)
  • Market conditions
  • Investment fees
  • Rebalancing strategy

Inflation Impact

Inflation erodes your purchasing power over time. The calculator factors this in by reducing your effective investment return.

Historical inflation patterns:

  • Long-term average: ~3%
  • Recent years: More volatile
  • Federal Reserve target: 2%

For example, if your investments earn 8% and inflation is 3%, your real (inflation-adjusted) return is 5% before taxes.

Tax Considerations

Investment returns are usually taxable, reducing your effective return. Your tax rate depends on:

  • Type of retirement account (Traditional vs Roth)
  • Your tax bracket
  • Type of investment income (interest, dividends, capital gains)
  • State taxes

The calculator uses your estimated tax rate to calculate an after-tax, inflation-adjusted return, giving you a more realistic picture of how long your savings will last.

Making Your Money Last Longer

To extend the life of your retirement savings, consider:

  1. Reducing withdrawal amounts during market downturns
  2. Maintaining a diversified investment portfolio
  3. Minimizing investment fees
  4. Using tax-efficient withdrawal strategies
  5. Having multiple income sources
  6. Adjusting spending based on investment performance

Use this calculator regularly to review and adjust your retirement strategy as your circumstances change.