How Long Will My Money Last in Retirement?
Enter your monthly spending, then Social Security and any pension in their own boxes. The calculator takes that income off your spending and shows the age your savings run out.
The number most people enter wrong
The single most common mistake is entering total monthly spending and leaving the Social Security box at 0. Almost no retiree funds their whole life from savings. The typical retired worker receives roughly $1,976 a month from Social Security, and many also have a pension. If you spend $5,000 a month and Social Security covers $2,000, your savings only need to produce $3,000. Enter the benefit in its box and the calculator does that subtraction for you, from the age it starts. Savings carrying $3,000 instead of $5,000 is often the difference between running out at 78 and lasting past 95.
What the result actually tells you
Compare the age shown against realistic longevity. A healthy 65-year-old today has roughly a 50% chance of reaching 87, and a couple has a meaningful chance one partner reaches 95. Planning to 90–95 is standard. If the calculator shows your money running out before then, you have four levers: spend less, work slightly longer, delay Social Security, or accept more portfolio risk. The first two are the most reliable.
How the calculator works
Each month the balance earns one month of return, then the withdrawal is taken out. The withdrawal itself rises a little every month, at the rate that compounds to your inflation figure over a full year, so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.
The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.
The three retirement-specific risks this model can't see
- Sequence risk. A bear market in your first three years does far more damage than the same market later, because you sell into it. Keeping one to two years of spending in cash is the standard defence.
- Healthcare before 65. Retiring early means buying insurance on the open market — often $1,000+ a month per person until Medicare starts. Add it to your spending figure.
- Long-term care. A meaningful minority of retirees need care costing $60,000–120,000 a year. Most plans either insure it or earmark a portion of the portfolio and exclude it from spendable assets.
Choosing realistic inputs
- Annual return. 4–5% is a conservative planning number for a balanced portfolio; 6–7% is closer to long-run history for 60/40; cash and CDs are 3–5% today but fall when rates fall.
- Inflation. The Federal Reserve targets 2%; the 30-year U.S. average is about 2.5%. Healthcare inflation runs higher, so retirees with large medical costs should test 3–3.5%.
- Withdrawal. Enter what you actually spend. Put Social Security and any pension in their own boxes, and the calculator takes them off your spending. Social Security counts from the starting age you enter. With those boxes at 0, enter only the gap that savings must cover.
Frequently asked questions
How long will my money last in retirement?
It depends almost entirely on your withdrawal rate rather than your balance. Withdrawing 4% of the starting balance a year, adjusted for inflation, has historically lasted 30+ years. At 6% it typically runs dry in the low 20s of years. Enter your own gap above to see your number.
Should I include Social Security in the calculator?
Yes. Enter it in the Social Security box with the age it starts, and any pension in the pension box. Enter your total spending as the withdrawal. The calculator takes that income off your spending and draws only the rest from your savings.
What age should I plan my money to last until?
Most planners use 90–95. A 65-year-old has roughly a 50% chance of living to 87, and for a couple the odds that one survives to 95 are meaningful, so planning only to average life expectancy leaves half the risk uncovered.
Does the calculator account for taxes in retirement?
Yes, if you enter a rate. Withdrawals from traditional 401(k) and IRA money are ordinary income, so the calculator grosses up each withdrawal to leave you the after-tax amount you asked for. Roth withdrawals are tax-free — enter 0.
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SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.
Printed from https://savingslast.com/how-long-will-my-money-last-in-retirement/ on . The figures reflect the inputs shown and the rules as published on that date.