How do I calculate how long retirement savings will last?

Basic formula: Savings ÷ Annual Expenses = Years. But this ignores investment returns. A better approach: use the 4% rule (Savings × 0.04 = safe annual withdrawal). For $500,000, that's $20,000/year indefinitely. Add Social Security and other income to get total annual income.

What is the 4% rule for retirement?

The 4% rule states that you can withdraw 4% of your initial portfolio in year one, then adjust for inflation each year, and your money should last 30+ years. For a $500,000 portfolio, withdraw $20,000 in year one, then $20,600 in year two (assuming 3% inflation), and so on.

How much do I need to retire?

Multiply your expected annual expenses by 25 (the inverse of 4%). If you need $50,000/year, you need $1.25 million. If Social Security covers $25,000, you only need to generate $25,000 from savings, requiring $625,000. Location matters too - $500k goes further in Iowa than California.

When should I start taking Social Security?

You can claim at 62 (reduced benefits), full retirement age (66-67), or delay to 70 (increased benefits). Each year you delay from 62 increases benefits ~7-8%. If you're healthy and have other income, delaying to 70 maximizes lifetime benefits. If you need income immediately, claiming earlier may be necessary.

Financial Scenario

Retirement Calculator: How Long Will Your Savings Last?

Planning for retirement requires knowing how long your savings will support you. This calculator helps you estimate your retirement runway based on your nest egg, expected expenses, Social Security, and investment returns. The 4% rule suggests withdrawing 4% annually for a 30+ year retirement.

Key Facts

4% rule: withdraw 4% annually for 30+ years

Social Security average: $1,800/month

Medicare begins at 65

Healthcare costs in retirement: $300k+/couple

Consider inflation: expenses rise 2-3%/year

Sequence of returns risk highest early

Calculate How Long Your Money Will Last

Enter your savings and expenses for a quick estimate

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