# SavingsLast: every page Generated 2026-09-08 from https://savingslast.com. Index: https://savingslast.com/llms.txt. MCP: https://savingslast.com/mcp. # How Long Will My Money Last? > See how many years your savings last at your withdrawal rate, return and inflation. Free chart, plus the safe amount to withdraw for 20, 25 or 30 years. Source: https://savingslast.com/ Markdown: https://savingslast.com/index.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Enter your balance, what you take out each month, and a return rate. The calculator shows the year your money runs out, charts the balance, and tells you the most you can withdraw to last 20, 25 or 30 years. *Interactive calculator on the page: https://savingslast.com/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Recently published guides The rules behind the numbers, and where they break. - [What a 401(k) Hardship Withdrawal Actually Leaves You: Withdraw $20,000 for a hardship and roughly $13,600 lands, on the assumptions below. To end up with $20,000 you have to request about $29,400.](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Can You Work While Taking a 72(t)?: You can work as much as you like while a 72(t) runs. The rule that traps people is about the account, not the job — and it costs the whole series.](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What Is the 4% Rule for Retirement?: The 4% rule explained: where it came from, what it actually promises, the four assumptions that break it, and what researchers say the safe rate is now.](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe Withdrawal Rate for 2026: Morningstar puts the 2026 safe starting withdrawal rate at 3.9% for a 30-year retirement. What that assumes, how it has moved since 2021, and what changes it.](https://savingslast.com/safe-withdrawal-rate-2026/) - [Retirement Withdrawal Strategies Compared: Fixed real, fixed percentage, guardrails, the RMD method and buckets — what each strategy does to your income, and which one suits which retiree.](https://savingslast.com/retirement-withdrawal-strategies/) ## Find your number Jump straight to the balance you actually have. - [$100,000](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## Or start from when you want to stop working - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## 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. ## Reading your result If the headline says your money lasts **indefinitely**, growth is covering your inflation-adjusted withdrawals — you are living on returns, not principal. If it gives a number of years, compare it with your life expectancy: a 65-year-old today should plan to around 90–95, so a result under 25–30 years is a warning sign. The three "to last N years" boxes are the practical output. They tell you the monthly spending ceiling for a chosen horizon, which is a far more useful number than any rule of thumb, because it is computed from *your* balance, return and inflation rather than a generic 4%. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Why the 4% rule is only a starting point The 4% rule came from a 1994 study of U.S. stock and bond returns: withdrawing 4% of the starting balance, then raising it with inflation, survived every historical 30-year period. It is a fine benchmark, but it assumes a 50–75% stock allocation, a 30-year horizon, no fees, and U.S. returns that may not repeat. Retiring at 55 with a 40-year horizon, paying 1% in fees, or holding mostly bonds all push the safe rate lower; flexible spending or a pension push it higher. The calculator lets you test those cases directly instead of guessing. ## Sequence-of-returns risk This calculator — like almost every free tool — assumes the same return every year. Real retirements are not smooth. Two retirees with the same average return can have completely different outcomes depending on whether the bad years arrive first or last. Withdrawing from a portfolio that has just fallen 30% locks in losses. The standard defences are a cash bucket of 1–2 years of spending, a flexible withdrawal rule that trims spending after down years, and delaying retirement or Social Security by a year if you retire into a bear market. ## Frequently asked questions **How long will $500,000 last with $3,000 monthly withdrawals?** At 5% returns and 2.5% inflation, about 17 years. Raise returns to 7% and it stretches to about 21 years; drop to 3% and it is roughly 14 years. See the [$500k page](https://savingslast.com/how-long-will-500k-last-in-retirement/) for a full table. **Does the calculator account for inflation?** Yes. Your monthly withdrawal is increased by the inflation rate every year so that your purchasing power stays constant. Enter 0% inflation if you want a fixed-dollar withdrawal. **Should I include Social Security?** Subtract it from your spending first. If you spend $5,000 a month and receive $2,000 from Social Security, your savings need to cover $3,000 — that is the number to enter. **Is a 5% return realistic?** For a balanced portfolio it is a conservative long-run assumption; historical 60/40 returns have been higher. Most planners prefer to be pleasantly surprised, so test 4–5% first, then see how 7% changes the picture. **What withdrawal rate is safe?** Historically, 4% of the starting balance (inflation-adjusted) survived 30 years in U.S. data; 3–3.5% is safer for longer horizons or lower expected returns. Use the "to last 30 years" box on this page for a figure based on your own inputs. ## Related calculators - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) 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. --- # 4% Rule Calculator > Test the 4% rule on your own balance, return and horizon. See what 4% actually pays, where the rule came from, and when 3% or 5% fits better. Source: https://savingslast.com/4-percent-rule-calculator/ Markdown: https://savingslast.com/4-percent-rule-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The best-known rule in retirement planning: withdraw 4% of your starting balance in year one, then raise that dollar amount with inflation every year after. Enter your balance to see what it pays — and whether your horizon supports it. *Interactive calculator on the page: https://savingslast.com/4-percent-rule-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What the rule actually says Take 4% of the balance *on the day you retire*. That dollar figure, increased annually for inflation, is your income for the rest of retirement. You do not recalculate 4% of the new balance each year — that is a different strategy with different behaviour. | Balance | Year-one withdrawal | Per month | | --- | --- | --- | | $250,000 | $10,000 | $833 | | $500,000 | $20,000 | $1,667 | | $750,000 | $30,000 | $2,500 | | $1,000,000 | $40,000 | $3,333 | | $1,500,000 | $60,000 | $5,000 | | $2,000,000 | $80,000 | $6,667 | ## Where it came from William Bengen published it in 1994 after testing every 30-year retirement window in U.S. market history, including the worst starting points — 1929 and 1966. Withdrawing 4% inflation-adjusted survived all of them. The Trinity Study in 1998 reached a similar conclusion with a different method. Neither claimed 4% was optimal; both asked what rate never failed. ## 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 assumptions baked into it - **A 30-year retirement.** Retire at 55 and you may need 40. The safe rate falls toward 3–3.25%. - **A 50–75% stock allocation.** A bond-heavy portfolio cannot support 4% over 30 years; the growth is not there. - **No fees.** A 1% advisory fee is a straight 1% off the return in this model, and it costs roughly half a percentage point off the safe rate. - **U.S. returns.** The rule is calibrated on the single most successful equity market of the twentieth century. - **Rigid spending.** It assumes you never adjust, which is the least realistic assumption of all. ## When to use a different number | Your situation | Reasonable rate | | --- | --- | | Retiring at 55–60, 35–40 year horizon | 3–3.25% | | Retiring at 65, 30 year horizon | 4% | | Retiring at 70+, 25 year horizon | 4.5–5% | | Willing to cut spending 10% after a bad year | Add roughly 0.5% | | Large guaranteed income covering essentials | Add roughly 0.5% | | Paying 1% in fees | Subtract roughly 0.5% | ## The failure the rule cannot see The 4% rule is a backtest, not a guarantee. Its defence against sequence-of-returns risk is that it survived history's worst sequences — but only the ones that happened. The practical protection is flexibility: retirees who trim spending after a bad year rather than mechanically raising it with inflation almost never run out, which is why "guardrails" strategies now dominate professional practice. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **Is the 4% rule still valid?** As a benchmark, yes. As a rule to follow mechanically, no — it assumes a 30-year horizon, a stock-heavy portfolio and zero fees, and it assumes you never adjust spending. Most planners now treat 4% as a starting estimate and use a flexible rule around it. **How much do I need to retire under the 4% rule?** 25 times the annual spending your savings must cover — the inverse of 4%. If savings must produce $40,000 a year after Social Security, that is $1,000,000. Apply it to the gap, not to total spending. **Does the 4% rule include Social Security?** No. It describes what your portfolio can pay. Subtract Social Security and any pension from your spending first, then apply 4% to the remaining gap. **What happens if I withdraw 5% instead?** Historically 5% failed in a meaningful share of 30-year periods, usually those starting with a bear market. Over 20–25 years it is far safer. Run both above and compare the years-remaining figure. ## Related calculators - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) 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. --- # 401(k) Distribution Calculator > Model 401(k) withdrawals with tax, growth and inflation. See how many years your 401(k) lasts and the monthly distribution it supports. Source: https://savingslast.com/401k-distribution-calculator/ Markdown: https://savingslast.com/401k-distribution-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Every dollar out of a traditional 401(k) is taxable income. This calculator grosses up each withdrawal for your tax rate so the monthly number you enter is what actually lands in your bank account. *Interactive calculator on the page: https://savingslast.com/401k-distribution-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The tax drag on 401(k) distributions A $600,000 traditional 401(k) is not $600,000 of spending money. If your blended federal and state rate in retirement is 20%, it is closer to $480,000 after tax — and taking $3,500 a month of spending requires withdrawing $4,375. That 25% larger withdrawal is why a 401(k) runs out sooner than a Roth or taxable account of the same size. Enter your expected rate in the tax field; the calculator does the gross-up for you. ## 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. ## Rules that shape 401(k) withdrawals - **Age 59½.** Distributions before this are generally hit with a 10% penalty on top of income tax, unless an exception applies. - **Rule of 55.** If you leave your employer in or after the year you turn 55, you can take penalty-free distributions from *that* employer's 401(k) (not IRAs). Rolling the money to an IRA forfeits this. - **Required minimum distributions (RMDs).** Begin at age 73 (75 for those born 1960 or later). The first-year RMD is roughly 3.8% of the balance and rises each year. Missing one costs a 25% excise tax on the shortfall. - **Withholding.** Plans withhold 20% federal tax on most lump-sum distributions by default; periodic payments can be set at a different rate. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Should you roll the 401(k) to an IRA first? An IRA usually offers lower-cost funds and more withdrawal flexibility, and consolidating old plans simplifies RMDs. Reasons to stay: the Rule of 55, strong creditor protection under ERISA, access to stable-value funds, and — for those with company stock — the net unrealized appreciation (NUA) strategy, which is lost on rollover. The decision does not change how long the money lasts in this calculator; it changes fees and taxes, which you can reflect in the return and tax fields. ## Frequently asked questions **How much can I withdraw from my 401(k) each month?** For a 30-year horizon at 5% returns and 2.5% inflation, the calculator typically shows a starting withdrawal near 4.5–5% of the balance per year before tax. Run your balance above; the "to last 30 years" box is your number. **How long will a $500,000 401(k) last?** Taking $3,000 a month after 20% tax (about $3,750 gross), at 5% return and 2.5% inflation, roughly 13 years. Without the tax drag it lasts about 17 years — taxes are the difference. **Are 401(k) withdrawals taxed as income?** Traditional 401(k) distributions are taxed as ordinary income at federal and usually state level. Roth 401(k) qualified distributions are tax-free. Some states (e.g. Florida, Texas, Pennsylvania, Illinois) do not tax retirement income. **What is the required minimum distribution?** An IRS-mandated annual withdrawal from traditional 401(k)s and IRAs starting at age 73, calculated as the prior year-end balance divided by a life-expectancy factor (26.5 at 73, so about 3.8%). ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) 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. --- # 403(b) Withdrawal Calculator > For teachers, nurses and nonprofit staff: see how long your 403(b) lasts with tax, growth and inflation, plus the safe monthly distribution. Source: https://savingslast.com/403b-calculator/ Markdown: https://savingslast.com/403b-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. For public-school, healthcare and nonprofit employees. A 403(b) is taxed like a 401(k) in retirement, and this calculator models the distributions — including the tax gross-up — so you can plan alongside a pension or Social Security. *Interactive calculator on the page: https://savingslast.com/403b-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Why 403(b) planning is different Most 403(b) owners also have a defined-benefit pension — a teacher's pension, a hospital system plan, or a state retirement system. That changes the math: the 403(b) does not have to fund your whole retirement, only the gap between pension plus Social Security and your actual spending. Enter *that gap* as the monthly withdrawal, not your total expenses, or the result will look far worse than reality. Two cautions specific to 403(b)s. First, many are invested in annuity products with fees of 1.5–2.5% a year; that drag is equivalent to lowering your return, so use 3.5–4% rather than 5% if you have not checked the expense ratio. Second, some public-sector employees are affected by the Windfall Elimination Provision and Government Pension Offset, which reduce Social Security — though the Social Security Fairness Act repealed both for benefits payable from January 2024. ## 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. ## 403(b) withdrawal rules - **Age 59½** for penalty-free distributions, with the same **Rule of 55** as 401(k)s if you separate from service in or after the year you turn 55. - **15-year service catch-up.** Long-tenured employees of qualifying employers could contribute extra while working; this only affects the balance you bring to retirement. - **RMDs** at age 73, with a special rule that pre-1987 contributions can be deferred to age 75. - **Rollovers** to an IRA are allowed and usually cut fees — the single most effective way to make a high-cost 403(b) last longer. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **How long will a $300,000 403(b) last?** Withdrawing $2,000 a month after 15% tax, at 5% returns and 2.5% inflation, about 12 years. Drop the withdrawal to $1,500 and it lasts roughly 17 years — pairing it with a pension is what makes the plan work. **Is a 403(b) taxed the same as a 401(k)?** Yes. Traditional 403(b) distributions are ordinary income; Roth 403(b) qualified distributions are tax-free. The same 10% early-withdrawal penalty and RMD rules apply. **Should I roll my 403(b) into an IRA when I retire?** If the 403(b) holds high-fee annuity products, a rollover to a low-cost IRA can add 1–2% a year of return, which over 25 years is the difference between running out and not. Check surrender charges first. **Can I take money from my 403(b) at 55?** Yes, without the 10% penalty, if you leave that employer in or after the year you turn 55 and take the money directly from the plan rather than rolling it to an IRA first. ## Related calculators - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) 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. --- # 457(b) Withdrawal Calculator > For government employees: model penalty-free early withdrawals, tax, growth and inflation to see how long your 457(b) lasts. Source: https://savingslast.com/457b-calculator/ Markdown: https://savingslast.com/457b-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The 457(b) is unique: no 10% penalty for withdrawals before 59½ once you separate from service. That makes it the ideal bridge account for early retirees — and this calculator shows how long it can carry you. *Interactive calculator on the page: https://savingslast.com/457b-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The early-retirement bridge Police officers, firefighters, and other government employees often retire in their 50s with a pension that starts immediately, but Social Security is a decade away. A governmental 457(b) fills that decade: because there is no early-withdrawal penalty after separation, you can draw it at 52 or 55 without the 72(t) gymnastics an IRA would require. The default example above — $250,000 funding $2,500 a month from age 55 — is exactly that use case. Run it with your own pension gap. One important distinction: **governmental** 457(b)s can be rolled to an IRA and enjoy the protections above. **Non-governmental** (tax-exempt employer) 457(b)s cannot be rolled to an IRA, remain the employer's asset until paid, and usually must be distributed on a fixed schedule chosen at separation. If you have one of those, the "how long will it last" question is partly answered by the plan's payout schedule. ## 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. ## 457(b) rules at a glance - **No 10% penalty** on distributions after separation from service at any age (governmental plans). - **RMDs** apply from age 73, the same as 401(k)s. - **Roth 457(b)** options exist in many governmental plans; qualified withdrawals are tax-free. - **Special 3-year catch-up** allowed contributions of up to double the normal limit in the three years before normal retirement age — relevant to the balance you arrive with. - **Tax.** Distributions are ordinary income; several states exempt some or all government retirement income. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **Can I withdraw from a 457(b) before 59½ without penalty?** Yes, if it is a governmental 457(b) and you have separated from service. Ordinary income tax still applies. Money rolled into the 457 from a 401(k) or IRA keeps its original penalty rules, however. **How long will $250,000 in a 457 last?** At $2,500 a month after 12% tax, 5% growth and 2.5% inflation, about 8 years — enough to bridge from 55 to Social Security at 62–63. Reduce the draw to $1,500 and it lasts around 15 years. **Should I roll my 457(b) into an IRA?** Usually not before 59½ — you would lose the penalty-free access that makes the 457 valuable. After 59½ a rollover can make sense for lower fees or consolidation. **Does a 457(b) have required minimum distributions?** Yes, starting at 73 (75 for those born 1960 or later). Roth 457(b) balances are no longer subject to lifetime RMDs as of 2024. ## Related calculators - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) 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. --- # 72(t) Distribution Calculator > A $500,000 IRA at 52 pays $30,773 a year under fixed amortization at 5%. All three IRS methods from Notice 2022-6, with the table, factor and formula shown. Source: https://savingslast.com/72t-distribution-calculator/ Markdown: https://savingslast.com/72t-distribution-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A $500,000 IRA at 52 pays **$30,773** a year under the fixed amortization method at 5%. The IRS permits 5% whatever the federal mid-term rate is doing. That is $2,564 a month, before federal and state income tax. Enter your balance, age and rate. The calculator shows all three IRS methods, with the table, factor and formula behind each figure. Rules and tables checked against the IRS sources on September 2, 2026. [Corrections log](https://savingslast.com/corrections/). *Interactive calculator on the page: https://savingslast.com/72t-distribution-calculator/. The same engine is the MCP tool sepp_72t_payment at https://savingslast.com/mcp.* ## What the three methods pay on the same $500,000 | Method | A year | A month | Later years | | --- | --- | --- | --- | | **Fixed amortization** | $30,773 | $2,564 | Same dollar amount every year | | **Fixed annuitization** | $32,264 | $2,689 | Same dollar amount every year | | **Required minimum distribution** | $14,577 | $1,215 | Recalculated from the new balance and age | Balance $500,000. Age 52 on the birthday in the first distribution year. Single Life Table, factor 34.3. Rate 5%, which is permitted in any month, so this example needs no rate month. Fixed annuitization pays **$1,491** a year more than fixed amortization on these inputs. The RMD method pays less than half of either in year one, and its figure moves every year. Started at 52 and run to 59½, roughly seven and a half years, fixed amortization draws about **$230,794** out of the $500,000. ## The rate is a ceiling, and 5% is always inside it Notice 2022-6, section 3.02(c), sets a ceiling: the greater of 5% and 120% of the federal mid-term rate. The mid-term figure comes from either of the two months before the month of the first payment. You may use any rate at or below that ceiling. A lower rate chosen to land on a round payment is permitted. The IRS prints the 120% figure in Table 1 of each month's applicable federal rates ruling. For September 2026 it was **5.40%** (Rev. Rul. 2026-17). On the same $500,000 at 52, a 5.40% rate lifts fixed amortization to $32,322 a year. That is $2,693 a month. A first payment in October or November 2026 may use it. A first payment in September may not, because the rule looks only at the two months before the payment month. ## The lock-in ends on a date, not at an age The series runs until the later of two dates. Five years after the first payment, or the day you reach 59½. Section 72(t)(4) sets both. Age 59½ is six calendar months after your 59th birthday. That is why the calculator asks for a birth date, not an age, before it prints the end date. Start at 52 in 2026 and 59½ governs. The series runs into 2033 or 2034. Your birthday decides which. Start at 57 and the five-year period governs, so a first payment in 2026 locks the account until 2031, past your 62nd birthday. ## What counts as breaking the series This is the part that frightens people, and it should. Change the series before the end date and section 72(t)(4) charges the 10% additional tax on every payment already taken, plus interest. Three years into the $500,000 example that is $92,318 distributed, so $9,232 of penalty, plus the interest. Notice 2022-6, section 3.02(e), names three modifications that have nothing to do with the payment amount. An addition to the account other than investment gains. A transfer of part of the balance to another retirement account. A rollover of a payment you received. Taking more than the scheduled amount in a year is a modification. Taking less is too. Three things are not modifications. The RMD method's payment changing each year is the method working as designed. Investment losses are not a modification. If the account runs out while you follow the method, section 3.03(a) says the shortened final payment and the stop are not either. Under section 3.03(b) you may switch once from either fixed method to the RMD method. After that switch, any further change is a modification. Two things end the series without the retroactive penalty: death, and disability as the code defines it. Section 72(m)(7) counts you as disabled only if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. Nothing else ends it. Not a job offer, not a market fall, not a change of mind. ## Split the IRA before the first payment Divide the IRA into two accounts before anything is distributed. Run the series from one, sized to produce the income you need, and leave the other alone. Money needed later comes from the untouched account with the ordinary 10% additional tax on that withdrawal alone, and the series stays intact. Roth conversions come from the other account too. The balance you calculate from is a real statement figure. Notice 2022-6, section 3.02(d), accepts the balance on any date from 31 December of the prior year to the first payment date. Take the statement after the split settles and write its date on the worksheet next to the figure. ## What arrives in the bank is less than the figure Every payment is ordinary income for federal tax and, in most states, for state tax. The [state pages](https://savingslast.com/retirement-taxes-by-state/) show which ones. The custodian withholds federal tax unless you file Form W-4R, and some states withhold too. The figure the method produces is the gross distribution, and the gross is what must match the schedule. The tax withheld from a scheduled payment is part of that payment. Money taken on top of it, to cover a tax bill, is not. That is a modification, and it costs you the whole series retroactively. If the net is not enough to live on, the answer is a different gross figure at the start, not a top-up later. The payment also counts toward modified adjusted gross income for marketplace health insurance subsidies, and it is locked for the term. Too large a payment can cost subsidies that taking less will not restore. Too small a payment can, in a state that did not expand Medicaid, leave you below the income where marketplace subsidies begin. ## When 72(t) is the wrong tool - **You have a 401(k) with the employer you are leaving at 55 or later.** The [rule of 55](https://savingslast.com/rule-of-55-calculator/) has no lock-in, no schedule and no retroactive penalty. Rolling that 401(k) into an IRA gives the rule up for good. - **You have Roth IRA contributions.** Direct contributions come out with no tax and no penalty at any age. - **You have taxable brokerage money.** Selling shares costs capital gains tax on the gain only, with no schedule attached. - **You need money for a year or two.** Five years is the minimum commitment. From a 401(k) or a similar plan, you must have left that employer first. From an IRA, you do not have to have left anything. ## Five things to settle before the first payment 1. **How you start it.** You file nothing. There is no form, no election and nobody to notify. You take the first payment, and the date of that payment starts the five-year clock. 2. **What you file each year.** Check box 7 of the 1099-R. Code 2 means the custodian has reported the exception and there is nothing more to file. Code 1 is common, and it means you file Form 5329 with exception code 02 every year the series runs. 3. **What you keep.** The balance statement and its date. The calculation with every input: table, factor, rate and the month it came from. The first distribution confirmation. Each year's 1099-R and Form 5329. Keep all of it seven years past the end of the series. 4. **How it ends.** On the later of the two dates above, and not a day earlier. Put that date in a calendar now. No 72(t) is registered with anyone. A code 1 1099-R claimed against Form 5329 is visible, and that is what can draw a notice. 5. **What to do if the custodian's number differs from yours.** You carry the consequence, not the custodian, and their figure is not an approval. Reconcile four things before the first payment: the balance date, the rate month, the table, and single or joint life. If the custodian will not administer the schedule, find one that will before the first payment. Whether an account can move mid-series is a question for a CPA or an enrolled agent who has handled a SEPP, not for a calculator. ## Write three things down and keep the page Before the first distribution, record the date, the balance with its statement date, and the rate with its month. If the IRS ever asks how you arrived at the number, that page is your answer. Then put the end date in a calendar. That is the first day anything may change. The ten IRS examples this page is checked against are published on the [test cases page](https://savingslast.com/72t-calculator-test-cases/). Run them through any other calculator before you trust it. Two questions decide whether to start at all. Does a [401(k) you can leave at 55](https://savingslast.com/rule-of-55-calculator/) or a taxable account cover the gap instead, with no lock-in? And can you live on the after-tax figure for the whole term without touching the series account? A no to the first and a yes to the second is the case for 72(t). Anything else is not. ## Frequently asked questions **What is a 72(t) distribution?** A series of substantially equal periodic payments from an IRA or a workplace plan that avoids the 10% additional tax before 59½. The payments are still taxable as ordinary income, federal and in most states. The amount comes from one of three IRS methods set out in Notice 2022-6. **How much can I take under 72(t)?** On a $500,000 IRA at 52 with the Single Life Table and a 5% rate, fixed amortization pays $30,773 a year. That is $2,564 a month before tax. The RMD method pays $14,577 in year one. Your balance, age, table and rate change all three figures. Enter them above. **What interest rate can I use for a 72(t)?** Any rate up to the greater of 5% and 120% of the federal mid-term rate for either of the two months before the month of your first payment, under Notice 2022-6, section 3.02(c). A lower rate is always permitted and gives a smaller payment. **How long must a 72(t) series continue?** Until the later of five years after the first payment and the date you reach 59½. Age 59½ is six calendar months after your 59th birthday. Enter your birth date and first payment date above and the calculator prints the exact end date. **Can I change or stop a 72(t)?** Once. You may switch from a fixed method to the RMD method under section 3.03(b), and the series continues at the lower figure. Any other change before the end date brings the 10% additional tax back on every payment already taken, plus interest. The exceptions are death, and disability as section 72(m)(7) defines it. **Can I take the 72(t) payment monthly?** The method fixes an annual amount. Paying it in twelve installments is common. What matters is that the total distributed in each year equals the figure the method produced. ## Related calculators - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) 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. --- # All Calculators and Guides > Every calculator and guide on SavingsLast — by balance, by retirement age, by account type, plus Social Security and retirement taxes in all 50 states. Source: https://savingslast.com/calculators/ Markdown: https://savingslast.com/calculators.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Everything on the site, grouped by the question you are trying to answer. Every calculator is free, runs in your browser, and never sends what you type anywhere. ## Start here The core question, asked several ways. If you are not sure where to begin, use the first one. - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) ## How long will a specific amount last? 22 balances, each with a full table of years by withdrawal rate and return. - [$100,000](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## Can I retire at a specific age? What each retirement age costs you in horizon, healthcare before Medicare, and Social Security. - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Withdrawal rules and penalties The rules that decide when you can touch the money, and what it costs if you touch it early. - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) ## By account type Every account has different distribution rules. These cover what comes out, when, and how it is taxed. - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Lump sum vs annuity](https://savingslast.com/pension-lump-sum-vs-annuity-calculator/) ## Social Security When to claim, what it is worth, and how much of it is taxable. - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Retirement taxes by state All 50 states and DC — what each one taxes in retirement, and what it charges instead. Start with the [side-by-side comparison](https://savingslast.com/retirement-taxes-by-state/). - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Maryland](https://savingslast.com/retirement-taxes-in-maryland/) - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Missouri](https://savingslast.com/retirement-taxes-in-missouri/) - [Montana](https://savingslast.com/retirement-taxes-in-montana/) - [Nebraska](https://savingslast.com/retirement-taxes-in-nebraska/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) - [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/) - [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/) - [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/) - [New York](https://savingslast.com/retirement-taxes-in-new-york/) - [North Carolina](https://savingslast.com/retirement-taxes-in-north-carolina/) - [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/) - [Ohio](https://savingslast.com/retirement-taxes-in-ohio/) - [Oklahoma](https://savingslast.com/retirement-taxes-in-oklahoma/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) - [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/) - [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/) - [South Carolina](https://savingslast.com/retirement-taxes-in-south-carolina/) - [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/) - [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/) - [Texas](https://savingslast.com/retirement-taxes-in-texas/) - [Utah](https://savingslast.com/retirement-taxes-in-utah/) - [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) - [Virginia](https://savingslast.com/retirement-taxes-in-virginia/) - [Washington](https://savingslast.com/retirement-taxes-in-washington/) - [Washington, D.C.](https://savingslast.com/retirement-taxes-in-washington-dc/) - [West Virginia](https://savingslast.com/retirement-taxes-in-west-virginia/) - [Wisconsin](https://savingslast.com/retirement-taxes-in-wisconsin/) - [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/) ## For your own site - [Embed this calculator free](https://savingslast.com/embed-calculator/) ## Reference - [Methodology](https://savingslast.com/methodology/) - [72(t) Calculator Test Cases](https://savingslast.com/72t-calculator-test-cases/) - [Corrections](https://savingslast.com/corrections/) - [About SavingsLast](https://savingslast.com/about/) - [Privacy Policy](https://savingslast.com/privacy/) - [Disclaimer](https://savingslast.com/disclaimer/) 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. --- # Bridge to 59½ Calculator > Year by year to 59½: which account pays for what, what a Roth ladder must convert, the 72(t) alternative, federal tax and the ACA line. Three strategies compared. Source: https://savingslast.com/retire-early-bridge-calculator/ Markdown: https://savingslast.com/retire-early-bridge-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A couple retires at 50 on $80,000 a year. They hold $600,000 in a taxable account, $1,200,000 pre-tax and $100,000 in a Roth. There are two ways to reach 59½. Spend the taxable account while a Roth conversion ladder matures behind it. That costs about **$37,105** of federal tax over ten years, with marketplace income over the 400% line in 5 of them. Or run a 72(t) on the IRA: on $1,200,000 it pays $72,375 a year and the taxable account covers the rest, for $43,250 of tax and 1 year over the line. Enter your own accounts and the table shows every year. Rules and tables checked against the IRS sources on September 2, 2026. [Corrections log](https://savingslast.com/corrections/). *Interactive calculator on the page: https://savingslast.com/retire-early-bridge-calculator/. The same engine is the MCP tool bridge_to_59_half at https://savingslast.com/mcp.* ## The three strategies on the same couple | Strategy | Federal tax, ten years | Years over the 400% line | Taxable runs out at | Pre-tax at 60 | Roth at 60 | | --- | --- | --- | --- | --- | --- | | **Taxable first, then a Roth ladder** | $37,105 | 5 | lasts | $1,251,773 | $315,049 | | **72(t) on a carved-off IRA** | $43,250 | 1 | lasts | $998,837 | $162,889 | | **Blend: 72(t) for half, ladder for the rest** | $39,192 | 5 | lasts | $1,019,697 | $250,930 | Age 50, married filing jointly, household of two, $80,000 spending rising 2.5% a year, 5% returns, 60% cost basis in the taxable account, 2026 federal tables held level, no state tax. The 72(t) uses fixed amortization at 5% on the Single Life Table. ## Where each strategy gets its money **Taxable first, then a Roth ladder.** Spending comes from cash, then the taxable account, and the gains realized there are taxed at the long-term rate. Meanwhile each year's conversion from the IRA to the Roth is sized to what the year five years ahead will need. Converted principal can be taken without the 10% additional tax once five tax years have passed. The rungs start paying out in year six and take over from the taxable account, which becomes the buffer. **72(t) on a carved-off IRA.** Split the IRA. Size one piece so the fixed amortization payment covers spending after other income, and take that payment every year until 59½. The payment is exact, level and locked. It does not rise with inflation, so the gap it leaves grows each year and the other accounts fill it. The [72(t) calculator](https://savingslast.com/72t-distribution-calculator/) shows the payment on its own. **The blend.** A smaller 72(t) covers the fixed part of spending, and a smaller ladder covers the rest. Two locks, each half as heavy. ## The ladder's timing problem This is the part that breaks plans, and it is not the tax. A conversion made this year is not spendable until five tax years have passed. So the ladder has to be built five years before it is needed, out of income you are taxed on now, while the taxable account carries the whole of spending. If the taxable account is too small to last five years, the ladder is not ready when it is needed. The table above marks any year the model has to take IRA money early and pay the 10%. That row is the plan failing. The fix is a longer runway of taxable money, a smaller spend, or a 72(t) for the base. ## The marketplace line runs through every year For a household of two, the premium tax credit for 2026 coverage ends at **$84,600** of marketplace income. A Roth conversion is income in the year it is made. A 72(t) payment is income. Realized gains are income. The ladder strategy front-loads conversions into the years the taxable account is also throwing off gains, which is exactly how a plan lands over the line. Tick the box to cap conversions under it and see what that does to the rungs. Cost-sharing reductions stop earlier, at $52,875. ## What this model does not do - **Returns are steady.** A bad first three years hits the taxable account, which is the runway. Test a lower return. - **One filer's age sets the tax additions.** A spouse over 65 in the bridge years would raise the deduction slightly. - **The cost-basis share is held fixed.** In practice you sell high-basis lots first and the share falls later. - **No Social Security, no state tax, no Roth earnings.** Earnings in the Roth are not drawn before 59½; only converted principal and contributions are. - **Tax law is held at 2026.** Brackets are indexed, so a ten-year plan in today's brackets is slightly pessimistic. ## Before you pick one, answer three questions How many years can the taxable account carry the whole of spending, after tax on the gains? That number decides whether a ladder can be built in time. Is any part of spending fixed enough to lock for the whole bridge? That part is the case for a 72(t). And does health insurance come from the marketplace? If so, the 400% line, not the tax bracket, is the ceiling that matters, and both strategies have to be run against it. Two other pages carry the next decision. The [Roth conversion calculator](https://savingslast.com/roth-conversion-calculator/) prices one year's conversion in full, including the Social Security and senior-deduction effects after 62. The [RMD calculator](https://savingslast.com/rmd-calculator/) shows what the pre-tax balance you leave behind must pay out at 73. ## Frequently asked questions **How does a Roth conversion ladder work?** You convert money from a traditional IRA to a Roth and pay tax on it in the year of the conversion. Five tax years later the converted principal can be withdrawn without the 10% additional tax, even before 59½. Converting every year builds a ladder of rungs that come due one after another. **Roth conversion ladder or 72(t)?** A ladder keeps every year flexible but needs five years of other money before the first rung pays out, and each rung is taxed when converted. A 72(t) pays from the first year and needs no runway, but the payment is fixed and locked until 59½. The table above runs both on your numbers. **How much should I convert each year for a ladder?** What you will need five years from now beyond your other income, adjusted for the spending growth you expect. Convert more only if you have the tax room and want to shrink future required distributions. **Can I do a 72(t) and a Roth ladder at the same time?** Yes, from different accounts. The 72(t) account cannot be added to, converted from or drawn from beyond its payment, so split the IRA first and run the ladder from the other piece. **Does a Roth conversion ladder affect ACA subsidies?** Yes. Each conversion is income in the year it is made, and for 2026 coverage the premium tax credit ends at 400% of the poverty line. The calculator can cap conversions to stay under it. **What if my taxable account runs out before the ladder is ready?** Then the model takes IRA money early and charges the 10% additional tax, and it marks that year. The fixes are a longer runway of taxable money, lower spending in the first years, or a 72(t) for the base of your spending. ## Related calculators - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) 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. --- # Early Withdrawal Penalty Calculator > What a withdrawal before 59½ really costs after the 10% penalty and income tax, plus every IRS exception that lets you avoid the penalty entirely. Source: https://savingslast.com/early-withdrawal-penalty-calculator/ Markdown: https://savingslast.com/early-withdrawal-penalty-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Taking retirement money before 59½ costs a 10% penalty on top of ordinary income tax. On a $50,000 withdrawal in the 22% bracket, roughly $16,000 disappears before you spend a cent — and that is before state tax. *Interactive calculator on the page: https://savingslast.com/early-withdrawal-penalty-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What it actually costs The tax field above is set to 32% — a 22% federal bracket plus the 10% penalty — so the calculator grosses up each withdrawal accordingly. Change it to your own bracket plus 10, and add your state rate. | You withdraw | 10% penalty | Federal tax at 22% | You keep | | --- | --- | --- | --- | | $10,000 | $1,000 | $2,200 | $6,800 | | $25,000 | $2,500 | $5,500 | $17,000 | | $50,000 | $5,000 | $11,000 | $34,000 | | $100,000 | $10,000 | $22,000 | $68,000 | Before state income tax. A large withdrawal can also push you into a higher bracket, so the marginal cost of the last dollar is often worse than the table suggests. ## The exceptions that waive the 10% penalty Income tax still applies to all of these; only the penalty is waived. - **Age 59½.** The base rule. - **[Rule of 55](https://savingslast.com/rule-of-55-calculator/)** — separation from service at 55+, workplace plans only. - **[72(t) substantially equal payments](https://savingslast.com/72t-distribution-calculator/)** — IRAs and plans, with a multi-year lock-in. - **Total and permanent disability.** - **Death** — distributions to a beneficiary. - **Unreimbursed medical expenses** above 7.5% of adjusted gross income. - **Health insurance premiums while unemployed** — IRAs only, after 12 consecutive weeks of unemployment compensation. - **Qualified higher education expenses** — IRAs only. - **First home purchase** — IRAs only, $10,000 lifetime cap. - **Birth or adoption** — up to $5,000 per child, and it can be repaid. - **Federally declared disaster** — up to $22,000, repayable over three years. - **Emergency personal expense** — one distribution of up to $1,000 a year under SECURE 2.0. - **Domestic abuse victims** — the lesser of $10,000 or 50% of the account. - **Terminal illness**, certified by a physician. - **IRS levy** on the account. - **Qualified military reservists** called to active duty for more than 179 days. ## The real cost is not the penalty It is the compounding you delete. $50,000 withdrawn at 45 would have been roughly $150,000 at 65 at 6% growth. The 10% penalty is $5,000; the opportunity cost is $100,000. That gap is the argument for a 401(k) loan, a home equity line, or almost any other source before an early withdrawal. ## 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. ## Better options first - **Roth IRA contributions** — your own contributions (not earnings) come out tax and penalty free at any age, for any reason. - **A 401(k) loan** — up to $50,000 or half the vested balance, repaid to yourself with interest, no tax or penalty if repaid on schedule. The risk is that leaving the job can accelerate repayment. - **Taxable brokerage** — you pay capital gains tax on the gain only, usually far less than ordinary income plus 10%. ## Frequently asked questions **How much is the early withdrawal penalty?** 10% of the amount withdrawn, on top of ordinary income tax. A $50,000 withdrawal in the 22% federal bracket loses about $16,000 to penalty and federal tax combined, before any state tax. **How can I avoid the 10% penalty?** Through one of the IRS exceptions — the rule of 55, a 72(t) series, disability, large medical expenses, health premiums while unemployed, higher education, a first home, birth or adoption, disaster relief, terminal illness, or military reservist duty. Income tax still applies in every case. **Is there a penalty on Roth withdrawals?** Not on your own contributions, which can be withdrawn at any time tax and penalty free. Earnings withdrawn before 59½ and before the account is five years old are taxable and penalised. **Does the penalty apply to inherited accounts?** No. Distributions to a beneficiary after the account owner’s death are exempt from the 10% penalty regardless of the beneficiary’s age, though income tax and the 10-year distribution rules still apply. See the [inherited IRA calculator](https://savingslast.com/inherited-ira-calculator/). ## Related calculators - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) 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. --- # How Long Will My Money Last in Retirement? > Free calculator showing exactly how long your money lasts in retirement, after Social Security, inflation and tax. See the age your savings run out. Source: https://savingslast.com/how-long-will-my-money-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-my-money-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Subtract Social Security and any pension from your monthly spending first — the gap is what savings must cover. Enter that gap below and the calculator shows the age your money runs out. *Interactive calculator on the page: https://savingslast.com/how-long-will-my-money-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The number most people enter wrong The single most common mistake is entering total monthly spending. 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** — and the difference between entering $5,000 and $3,000 is often the difference between "runs out at 78" and "lasts 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what 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?** No — subtract it from your spending first. The calculator models what your *savings* must cover, which is total spending minus Social Security, pension and any other guaranteed income. **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. ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # How Long Will My Retirement Savings Last? > Calculate how long your retirement savings will last at your withdrawal amount, returns and inflation — plus the safe withdrawal rate for a 30-year retirement. Source: https://savingslast.com/how-long-will-my-retirement-savings-last/ Markdown: https://savingslast.com/how-long-will-my-retirement-savings-last.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Enter your retirement balance and the monthly amount you need from it. The calculator returns the number of years it survives and the maximum you could safely take for 20, 25 or 30 years. *Interactive calculator on the page: https://savingslast.com/how-long-will-my-retirement-savings-last/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Withdrawal rate decides this, not balance size Two people with identical balances can have completely different outcomes. What matters is the *ratio* of what you take to what you have. $500,000 with $1,667 a month (4%) behaves very differently from $500,000 with $2,500 a month (6%) — and the table below shows why that gap dominates every other input. | Annual withdrawal rate | On $500,000 | Roughly lasts (5% return) | | --- | --- | --- | | 3% | $1,250/mo | Indefinitely in most scenarios | | 4% | $1,667/mo | 30+ years | | 5% | $2,083/mo | About 25 years | | 6% | $2,500/mo | About 19 years | | 8% | $3,333/mo | About 13 years | Run your own balance above — the "to last 20 / 25 / 30 years" boxes convert this into a concrete monthly spending ceiling. ## 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. ## Making retirement savings last longer without spending less - **Delay Social Security.** Every year you wait between 62 and 70 raises the benefit permanently by roughly 7–8%. Bridging two or three years from savings often buys a much larger lifetime income. - **Use flexible withdrawals.** Cutting spending around 10% after a bad market year — the "guardrails" approach — historically adds years of portfolio survival with modest lifestyle impact. - **Get the withdrawal order right.** Taxable accounts first, then traditional, then Roth is the textbook sequence, and it commonly adds a year or two of after-tax portfolio life. - **Cut investment fees.** A 1% annual fee is a 1% lower return in this model. Over a 30-year retirement that is not a rounding error. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **How long will $500,000 in retirement savings last?** At $2,500 a month with 15% tax, 5% returns and 2.5% inflation, roughly 13 years. Drop the withdrawal to $1,667 a month (the 4% rule) and it stretches past 30 years. See the [$500k page](https://savingslast.com/how-long-will-500k-last-in-retirement/) for the full table. **What is a safe withdrawal rate?** About 4% of the starting balance per year, rising with inflation, is the classic benchmark for a 30-year retirement. For longer horizons or lower expected returns, 3–3.5% is safer. The calculator solves this for your own numbers. **How much do I need to retire?** A rough starting point is 25× your annual spending gap — the amount your savings must cover after Social Security and pensions. If savings must produce $36,000 a year, that suggests around $900,000. Test it above rather than trusting the rule of thumb. **Will my retirement savings last if I retire at 60?** A 60-year-old should plan for a 30–35 year horizon, which pushes the safe withdrawal rate down toward 3–3.5%, and must also fund healthcare privately until Medicare at 65. Both make early retirement meaningfully more demanding than retiring at 67. ## Related calculators - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) 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. --- # How Long Will My Savings Last? > Work out how long your savings will last at your monthly spending, with interest and inflation. For career breaks, redundancy, sabbaticals or bridging to retirement. Source: https://savingslast.com/how-long-will-my-savings-last/ Markdown: https://savingslast.com/how-long-will-my-savings-last.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. For any pot you are living on rather than adding to — redundancy, a career break, a sabbatical, or bridging the gap to a pension. Enter the balance and your monthly spending to see your runway. *Interactive calculator on the page: https://savingslast.com/how-long-will-my-savings-last/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Runway, not retirement This is the version of the question that is not about retirement. If you have been made redundant, are taking time out, or are self-funding a course or a business, the number you want is **months of runway** — and the honest version uses your real spending, not your optimistic budget. Look at the last three months of actual outgoings and use that figure. ## 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. ## Two adjustments worth making - **Strip out work costs.** Commuting, lunches, and work clothing often fall away, which can cut spending 10–15% without any lifestyle change. - **Keep the money reachable.** Anything you might spend within two years should sit in cash or short-term savings, not investments. A 20% market fall in month three of a career break is a genuine problem; the same fall in year fifteen of retirement is noise. ## Common runway benchmarks | Situation | Typical target | | --- | --- | | Emergency fund, stable job | 3–6 months of spending | | Emergency fund, variable income | 6–12 months | | Planned career break | Length of break + 3 months buffer | | Bridging to a pension | Months until it starts + 6 months | The buffer matters more than the headline. Job searches and business ramp-ups routinely take longer than planned, and running the account to zero forces bad decisions at the worst moment. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **How long will $50,000 in savings last?** At $2,500 a month with 4% interest, about 21 months. At $3,500 a month it is closer to 15 months. Interest barely moves the answer over short horizons — your spending rate is what matters. **How many months of savings should I have?** Three to six months of essential spending is the standard emergency-fund target for someone with stable employment, and six to twelve months if your income is variable or your industry is volatile. **Should I keep savings in a high-yield account?** For money you may need within two years, yes — a high-yield savings account or short CD keeps it safe while earning 4%+. Money that is not needed for a decade belongs in a diversified portfolio instead. **Does the calculator include inflation?** Yes. Your monthly spending is increased by the inflation rate each year. For short runways of under a year, set inflation to 0 — it barely changes the result over that horizon. ## Related calculators - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) 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. --- # HSA Retirement Calculator > After 65 an HSA works like a traditional IRA for any spending, and stays tax-free for medical costs. See how long an HSA lasts and how to use it in retirement. Source: https://savingslast.com/hsa-retirement-calculator/ Markdown: https://savingslast.com/hsa-retirement-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A health savings account is the only account in the tax code that is deductible going in, tax-free while it grows, *and* tax-free coming out — as long as the money goes on qualified medical expenses. After 65 the rules loosen considerably. *Interactive calculator on the page: https://savingslast.com/hsa-retirement-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What changes at 65 - **Medical spending stays completely tax free** — deductibles, copays, dental, vision, hearing aids, long-term care premiums within limits, and **Medicare Part B, Part D and Advantage premiums** (though not Medigap). - **Non-medical spending is allowed**, taxed as ordinary income with **no penalty**. Before 65 the same withdrawal carries a 20% penalty on top of tax. - In other words, after 65 an HSA is at worst a traditional IRA and at best a tax-free account. There is no scenario in which it is worse than the alternatives. The calculator above is set with no tax, modelling medical spending, and inflation at 3% because healthcare inflation runs above the general rate. Change the tax field to your bracket if you plan to spend the money on anything else. ## The receipt strategy There is no deadline for reimbursing yourself. If you pay a medical bill out of pocket today and keep the receipt, you can reimburse yourself from the HSA in twenty years — tax free — after the money has compounded the whole time. Some retirees accumulate decades of receipts as a tax-free withdrawal allowance they can draw on at any point. The practical requirements: the expense must have been incurred after the HSA was opened, it must not have been reimbursed or deducted elsewhere, and you need to be able to produce the records. Photograph every receipt and keep a running spreadsheet. ## What an HSA is actually for in retirement Healthcare is the least predictable large expense in retirement. A common estimate puts lifetime out-of-pocket medical costs for a 65-year-old couple in the region of $300,000, excluding long-term care. An HSA is the only account designed to meet exactly that, with no tax drag at any stage. ## Two rules that catch people out - **You cannot contribute once enrolled in Medicare.** Contributions must stop, and if you claim Social Security after 65 the six-month retroactive Part A enrolment means you should stop contributing six months before applying, or face an excise charge. - **HSAs are poor inheritances for anyone but a spouse.** A spouse inherits it as their own HSA. Any other beneficiary receives the entire balance as taxable income in one year, which is the worst possible treatment — so spend the HSA before other accounts if leaving a legacy matters. ## 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. ## Frequently asked questions **Can I use my HSA for non-medical expenses after 65?** Yes. From 65 the 20% penalty disappears and non-medical withdrawals are simply taxed as ordinary income, exactly like a traditional IRA. Medical withdrawals remain completely tax free at any age. **Can I pay Medicare premiums from an HSA?** Yes, tax free — Part B, Part D and Medicare Advantage premiums are all qualified expenses once you are 65. Medigap supplement premiums are the notable exception and are not qualified. **Can I still contribute to an HSA after 65?** Only if you are not enrolled in any part of Medicare. Once Medicare starts, contributions must stop. Because Part A can apply retroactively for up to six months when you claim Social Security after 65, stop contributing six months before you apply. **What happens to my HSA when I die?** A spouse beneficiary inherits it as their own HSA with all the tax advantages intact. Any other beneficiary must include the full balance in their taxable income in the year of death, so an HSA is generally the account to spend first if you plan to leave a legacy. ## Related calculators - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) 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. --- # Inherited IRA Calculator > Most non-spouse beneficiaries must empty an inherited IRA within 10 years. See what that means per year, when annual RMDs also apply, and how to spread the tax. Source: https://savingslast.com/inherited-ira-calculator/ Markdown: https://savingslast.com/inherited-ira-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The SECURE Act ended the stretch IRA for most people. If you inherited an IRA from someone other than a spouse, you generally have ten years to empty it — and how you spread those withdrawals is worth far more than how you invest them. *Interactive calculator on the page: https://savingslast.com/inherited-ira-calculator/. The same engine is the MCP tool inherited_ira_schedule at https://savingslast.com/mcp.* ## The 10-year rule For most non-spouse beneficiaries of someone who died after 2019, the entire account must be distributed by 31 December of the tenth year following the year of death. There is no annual minimum in the classic sense — but under the final regulations issued in 2024, **if the original owner had already begun required minimum distributions, the beneficiary must also take annual RMDs during years one to nine**, and still empty the account in year ten. Enforcement of that annual requirement began with the 2025 tax year. If the owner died before their required beginning date, no annual RMDs apply — only the year-ten deadline. ## Spreading it evenly is usually the answer Emptying a $400,000 inherited IRA in one year can push a mid-career beneficiary from the 24% bracket into the 35% bracket. Spreading it across ten years keeps each slice smaller. | Strategy | On $400,000 | Typical outcome | | --- | --- | --- | | Lump sum in year one | $400,000 of income | Worst case — often two brackets higher | | Even tenths | About $40,000 a year | Usually the default best answer | | Front-loaded into low-income years | Variable | Best if you retire, take a sabbatical or have a low-income year inside the window | | Wait and take it all in year ten | $400,000 of income | Common mistake — the deadline arrives with the whole bill | The calculator above spreads the balance in level withdrawals that empty the account by the deadline, shows the annual minimum in the years one applies, and prices each year at your marginal rate. ## Who is exempt from the 10-year rule - **Surviving spouses.** A spouse may treat the IRA as their own, roll it over, or remain a beneficiary — much more flexible, and usually the best outcome. - **Minor children of the deceased.** Stretch until majority, then the 10-year clock starts. Grandchildren do not qualify. - **Disabled or chronically ill beneficiaries.** Full life-expectancy stretch. - **Beneficiaries not more than 10 years younger** than the deceased — typically a sibling or partner. ## Rules that catch people out - **You cannot roll an inherited IRA into your own IRA** unless you are the spouse. Doing so is treated as a full taxable distribution. - **Inherited Roth IRAs also face the 10-year rule**, but withdrawals are tax free — so the right strategy is the opposite: leave it untouched and empty it in year ten after a decade of tax-free growth. - **There is no 10% early-withdrawal penalty** on an inherited IRA, whatever your age. - **The 50% penalty for a missed RMD is now 25%**, reduced to 10% if corrected promptly. ## 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. ## Frequently asked questions **What is the 10-year rule for inherited IRAs?** Most non-spouse beneficiaries of an account owner who died after 2019 must fully distribute the inherited IRA by the end of the tenth year after the year of death. If the owner had already started required minimum distributions, annual RMDs are also required in years one to nine. **Do I have to take money out every year?** Only if the original owner had reached their required beginning date. Otherwise the account simply has to be empty by year ten. Even where annual withdrawals are not required, spreading them out is usually the lower-tax choice. **Is an inherited IRA taxable?** Distributions from an inherited traditional IRA are ordinary income to the beneficiary. Inherited Roth IRAs are tax free, though the 10-year deadline still applies — which is why the best strategy for an inherited Roth is to leave it growing until year ten. **Can I roll an inherited IRA into my own?** Only a surviving spouse can. For anyone else the account must stay titled as an inherited IRA; moving it into your own IRA is treated as a complete distribution and taxed in full that year. ## Related calculators - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) 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. --- # Investment Calculator With Withdrawals > Compound interest with regular withdrawals. See whether a balance grows or runs down when you take money out monthly, with inflation and tax. Source: https://savingslast.com/investment-calculator-with-withdrawals/ Markdown: https://savingslast.com/investment-calculator-with-withdrawals.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Most compound-interest calculators only add money. This one subtracts it. Enter a balance, a monthly withdrawal and a return rate to see whether the investment grows, holds steady, or runs down — and when. *Interactive calculator on the page: https://savingslast.com/investment-calculator-with-withdrawals/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Growth with withdrawals: the break-even rate An investment with monthly withdrawals has a simple tipping point. If the annual return exceeds the annual withdrawal rate plus inflation, the real balance grows forever; if it falls short, the balance eventually hits zero. With the default above — $300,000, $1,000 a month (4%/yr), 7% return, 2.5% inflation — growth wins and the result is "indefinitely." Change the return to 5% and the money runs out after roughly 38 years. The calculator makes that threshold visible instantly. ## 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. ## Common uses - **Living off dividends or interest.** Enter the portfolio's total return, not just the yield, and the withdrawal you take. If the result is "indefinitely," you are living within the portfolio's means. - **Funding college from a brokerage account.** Set inflation to 5–6% (tuition inflation) and a 4-year horizon, and see what balance is needed. - **A trust or inheritance paying a monthly stipend.** The "to last N years" figures show the sustainable stipend for a chosen term. - **Early retirement (FIRE).** Use a 40–50-year horizon by checking whether the result is "indefinitely" at a 3–3.5% withdrawal; that is the FIRE community's working definition of a safe rate. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Taxes on investment withdrawals In a taxable brokerage account you are taxed on dividends and on realised gains, not on the full withdrawal — selling $1,000 of stock with a $600 cost basis creates $400 of gain, taxed at 0%, 15% or 20% depending on income. The tax field in this calculator applies a flat rate to the whole withdrawal, which is right for traditional retirement accounts and conservative for brokerage accounts. For a taxable account, enter roughly half your capital-gains rate as an approximation. ## Frequently asked questions **What is an investment calculator with withdrawals?** A compound-interest calculator that also subtracts regular withdrawals, so you can see whether a balance grows or depletes over time and how long it lasts. **How much can I withdraw without touching principal?** Roughly the return rate minus inflation, as a percentage of the balance. At 7% return and 2.5% inflation that is about 4.5% a year — on $300,000, about $1,125 a month. **Does the calculator compound monthly or annually?** Monthly. The annual return you enter is converted to an equivalent monthly rate, applied each month before the withdrawal is taken. **Can I model adding money instead of withdrawing?** This tool is built for withdrawals. For contributions, any standard compound-interest calculator will do; the two can be combined by running the accumulation phase there and entering the ending balance here. ## Related calculators - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) 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. --- # IRA Withdrawal Calculator > Calculate how long a traditional or Roth IRA lasts with monthly withdrawals, investment growth, inflation and taxes. Includes the 30-year safe withdrawal amount. Source: https://savingslast.com/ira-withdrawal-calculator/ Markdown: https://savingslast.com/ira-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Works for traditional and Roth IRAs. For a traditional IRA enter your tax rate; for a Roth set it to 0 — qualified Roth withdrawals are tax-free, which is why the same balance lasts longer. *Interactive calculator on the page: https://savingslast.com/ira-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Traditional vs. Roth: same balance, different lifespan Run $400,000 with $2,500 a month at 5% return and 2.5% inflation. With 0% tax (Roth) the money lasts about 16 years. With 15% tax (traditional) it lasts about 13, because every $2,500 of spending requires a $2,941 withdrawal. That three-year gap is the after-tax value of a Roth, and it is why conversions during low-income years are worth modelling. ## 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. ## IRA withdrawal rules worth knowing - **Before 59½.** Traditional IRA withdrawals face a 10% penalty plus tax, with exceptions for first-home purchase ($10,000), higher education, certain medical costs, and substantially equal periodic payments (72(t)). Roth contributions (not earnings) can be withdrawn any time tax- and penalty-free. - **RMDs.** Traditional IRAs require distributions from age 73. Roth IRAs have no RMDs for the original owner. - **Inherited IRAs.** Most non-spouse beneficiaries must empty the account within 10 years — a large tax bill if taken as a lump, so spreading withdrawals across the decade matters. - **Qualified charitable distributions.** From age 70½, up to $108,000 a year (2025) can go directly to charity, counting toward the RMD without being taxed. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Making an IRA last longer Beyond spending less, the levers are tax and sequencing. Fill low brackets with traditional withdrawals or Roth conversions in the years before Social Security and RMDs begin. Keep one to two years of planned withdrawals in a money market fund inside the IRA so a market fall does not force stock sales. And reconsider the withdrawal rate every year rather than fixing it for life — a 10% cut after a bad year adds more survival time than almost any investment change. ## Frequently asked questions **How much can I withdraw from my IRA each month?** Enter your balance above; the "to last 30 years" box gives the inflation-adjusted monthly amount. As a rough rule it is 4–5% of the balance a year before tax at 5% expected returns. **Is a Roth IRA withdrawal taxable?** Qualified withdrawals — after age 59½ and once the account is five years old — are entirely tax-free. Contributions can be withdrawn at any age tax-free; only earnings withdrawn early are taxed and penalised. **When do IRA required minimum distributions start?** At age 73 for anyone born 1951–1959 and age 75 for those born in 1960 or later. Roth IRAs have no lifetime RMDs. **Can I withdraw from an IRA at 55 without penalty?** Not normally. The Rule of 55 applies only to 401(k)s. For an IRA you would need a 72(t) series of substantially equal payments, or one of the statutory exceptions. ## Related calculators - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) - [Lump sum vs annuity](https://savingslast.com/pension-lump-sum-vs-annuity-calculator/) - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) 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. --- # Pension Lump Sum vs Annuity > Compare a pension lump sum against the monthly annuity. Work out the implied payout rate, how long the lump sum lasts, and which decision fits your situation. Source: https://savingslast.com/pension-lump-sum-vs-annuity-calculator/ Markdown: https://savingslast.com/pension-lump-sum-vs-annuity-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Your employer offers a lump sum or a monthly pension for life. The way to compare them is not a gut feeling about "having control" — it is one number: the payout rate the annuity implies, and whether your portfolio could beat it. *Interactive calculator on the page: https://savingslast.com/pension-lump-sum-vs-annuity-calculator/. The same engine is the MCP tool pension_lump_sum_vs_annuity at https://savingslast.com/mcp.* ## Step one: calculate the implied payout rate Divide the annual pension by the lump sum. A $2,000-a-month pension against a $400,000 lump sum is $24,000 ÷ $400,000 = **6%**. Now compare that to what you could safely withdraw from the same money yourself — which for a 30-year horizon is roughly 4%. | Implied payout rate | Reading | | --- | --- | | Under 4% | The lump sum is generous. Take it and invest. | | 4% – 5% | Close. Decide on the non-financial factors below. | | 5% – 6% | The annuity is competitive, especially if it has any inflation adjustment. | | Over 6% | The annuity is hard to beat with a portfolio at acceptable risk. | Enter the lump sum, the pension and your age above. The calculator prints the payout rate, the age at which the invested lump sum runs out paying the same pension, the return it would need to last to your planning age, and the odds of being alive then. ## The adjustment most people forget Most private pensions are **not inflation-adjusted**. A fixed $2,000 a month is worth about $1,220 in today's money after 20 years at 2.5% inflation, and about $950 after 30. That is a serious erosion, and it is why a 6% fixed annuity is not obviously better than a 4% withdrawal from a portfolio that grows. Federal and most state government pensions do have cost-of-living adjustments, which changes the comparison completely — a COLA'd pension at 5% is exceptional value. ## Take the annuity when - The implied payout rate is above 5–6% and the pension has any inflation protection. - You have no other guaranteed income beyond Social Security and want essentials covered for life. - You are in good health with family longevity — annuities pay off for people who live long. - You know you would be tempted to spend or mismanage a large lump sum. - Your plan is well funded and covered by the Pension Benefit Guaranty Corporation within its limits. ## Take the lump sum when - The implied payout rate is below 4–4.5%. - Your health or family history suggests a shorter horizon. - You want to leave money to heirs — a single-life annuity pays nothing after your death. - You already have substantial guaranteed income and want flexibility instead. - The employer is in financial difficulty and the benefit exceeds PBGC guarantee limits. ## The survivor decision inside the annuity If you take the annuity and are married, the single-life option pays more but stops at your death. A 50% or 100% joint-and-survivor option pays less each month and continues for your spouse. Declining survivor benefits requires spousal consent for a reason — it is the choice most likely to leave a widow or widower short, and the extra monthly income rarely justifies it unless the spouse has a large pension of their own. ## 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. ## Frequently asked questions **Should I take a pension lump sum or monthly payments?** Divide the annual pension by the lump sum to get the implied payout rate. Below about 4% the lump sum is generous; above about 6% the annuity is hard to beat with a portfolio. Between those, non-financial factors — health, heirs, other guaranteed income — decide it. **How do I calculate the value of a pension?** Compare it to the lump sum needed to produce the same income safely. A $2,000 monthly pension is $24,000 a year; at a 4% safe withdrawal rate that would require roughly $600,000 of portfolio. If the offered lump sum is well below that, the pension is the better value. **Does inflation matter for a pension decision?** Enormously. Most private pensions are fixed, so a $2,000 payment loses about 40% of its purchasing power over 20 years at 2.5% inflation. A government pension with a cost-of-living adjustment is worth far more than the same headline amount without one. **What happens to my pension if my employer goes bankrupt?** Private defined-benefit pensions are insured by the Pension Benefit Guaranty Corporation up to annual limits that vary with your age at retirement. Benefits above the limit are at risk, which is one of the few strong arguments for taking a lump sum from a weak sponsor. ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # Retirement Drawdown Calculator > Model monthly withdrawals, growth, inflation and tax to see how long your retirement savings last — plus your safe drawdown rate for 30 years. Source: https://savingslast.com/retirement-drawdown-calculator/ Markdown: https://savingslast.com/retirement-drawdown-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Drawdown is the phase where you stop adding and start spending. This calculator models it month by month — growth, inflation-adjusted withdrawals and taxes — and shows when the pot runs dry and how much you can safely draw. *Interactive calculator on the page: https://savingslast.com/retirement-drawdown-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Accumulation vs. drawdown Saving for retirement is forgiving: a bad year early is smoothed out by decades of contributions. Drawdown is the opposite. You are selling assets every month, so a market fall in the first few years of retirement does permanent damage — the shares you sold at the bottom never recover. That is why retirement drawdown planning is less about maximising return and more about *not* being forced to sell in a downturn. ## 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. ## Drawdown strategies compared | Strategy | How it works | Best for | | --- | --- | --- | | Constant inflation-adjusted (4% rule) | Fixed real income; what this calculator models | Simple budgets, pension-like income | | Percentage of portfolio | Withdraw e.g. 5% of whatever the balance is each year | Never runs out, but income swings | | Guardrails (Guyton–Klinger) | Start higher (5%+), cut 10% after bad years, raise after good ones | Flexible spenders wanting more income | | Bucket strategy | 1–3 years cash, 4–10 years bonds, rest stocks; refill buckets in good years | People who want to avoid selling in a crash | | RMD-based | Withdraw balance ÷ remaining life expectancy | Those who want to spend it all safely | ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Tax-efficient withdrawal order Which account you draw from matters almost as much as how much. The conventional sequence is taxable brokerage first (to let tax-deferred money keep compounding), then traditional 401(k)/IRA, then Roth last. Between retirement and the start of required minimum distributions (age 73, rising to 75 in 2033), many retirees sit in a low bracket and can convert traditional money to Roth at 10–12% — a move that can add years to how long a portfolio lasts after tax. Enter your blended expected tax rate in the calculator to see the gross withdrawals you will actually need. ## Frequently asked questions **What is a retirement drawdown calculator?** A tool that simulates spending down a retirement pot: it applies investment growth, subtracts inflation-adjusted withdrawals (and taxes), and reports how many years the money lasts or how much can be safely withdrawn. **What is a safe drawdown rate?** Around 4% of the starting balance per year, adjusted for inflation, is the classic benchmark for a 30-year retirement. Longer horizons or lower return expectations point to 3–3.5%. This page computes the rate implied by your own numbers. **How do taxes affect drawdown?** Withdrawals from traditional 401(k) and IRA accounts are taxed as ordinary income, so to spend $4,000 at a 15% rate you must withdraw about $4,706. The tax field on the calculator applies exactly that gross-up. **Should I draw down or buy an annuity?** An annuity converts part of the balance into guaranteed lifetime income and removes longevity risk but sacrifices flexibility and legacy. Many planners suggest annuitising just enough to cover essential expenses alongside Social Security, and drawing down the rest. ## Related calculators - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) 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. --- # Retirement Withdrawal Calculator > Find the safe monthly withdrawal from your retirement savings. Models returns, inflation and taxes, and solves the maximum you can take for 20, 25 or 30 years. Source: https://savingslast.com/retirement-withdrawal-calculator/ Markdown: https://savingslast.com/retirement-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Answers the reverse question: instead of "how long will it last", this tells you how much you can take. Enter your balance and the three boxes below the chart give the safe monthly withdrawal for 20, 25 and 30 years. *Interactive calculator on the page: https://savingslast.com/retirement-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## How much can I withdraw? The famous answer is 4% of the starting balance, rising with inflation each year. It came from studying U.S. market history and asking what rate survived every 30-year window — including retiring straight into 1929 or 1966. It is a reasonable benchmark and a poor rule to follow blindly, because it assumes a 30-year horizon, a stock-heavy portfolio, and no fees. The calculator replaces the rule with arithmetic on your actual numbers. The "to last 30 years" figure is the largest inflation-adjusted monthly withdrawal that survives 360 months at the return and inflation you entered. ## 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. ## When to withdraw more than 4% - **Shorter horizon.** Retiring at 75 means planning 20 years, not 30 — that supports a materially higher rate. - **Flexible spending.** If you can cut back in bad years, starting at 5% is defensible. - **Large guaranteed income.** If a pension and Social Security cover essentials, portfolio volatility threatens only discretionary spending. ## When to withdraw less - **Early retirement.** A 40-year horizon points to 3–3.5%. - **Conservative portfolio.** Mostly bonds and cash cannot support 4% across three decades once inflation is applied. - **Fees.** Subtract every fee from the return you enter, because that is exactly how they behave. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **How much can I withdraw from my retirement account each month?** For a 30-year retirement at 5% returns and 2.5% inflation, typically 4–4.5% of the balance a year before tax. On $800,000 that is roughly $2,700–3,000 a month. Enter your own balance above for a precise figure. **What is the 4% rule?** Withdraw 4% of your starting balance in year one, then increase that dollar amount by inflation each year. In historical U.S. data this survived every 30-year period tested, which is why it became the default benchmark. **Is the 4% rule still valid?** It remains a reasonable starting point, though many planners now favour 3.5% for longer retirements or lower expected returns. Its bigger weakness is rigidity — flexible strategies that adjust after bad years historically support higher average spending. **Should I withdraw monthly or annually?** Monthly withdrawals leave more money invested for longer and so last very slightly longer, but the difference is under 1% a year. Choose whichever matches how you budget. ## Related calculators - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) 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. --- # RMD Calculator > Your 2026 RMD from the IRS Uniform Lifetime Table. A $500,000 IRA at 73 must pay out # RMD Calculator8,868. The deadline, the 25% penalty, and a ten-year projection. Source: https://savingslast.com/rmd-calculator/ Markdown: https://savingslast.com/rmd-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A $500,000 IRA at 73 must pay out **$18,868** in 2026, which is 3.77% of the balance on 31 December 2025. Enter your balance and birth year. The calculator reads the IRS Uniform Lifetime Table, prints the factor and the division, and tells you the deadline. Rules and tables checked against the IRS sources on September 2, 2026. [Corrections log](https://savingslast.com/corrections/). *Interactive calculator on the page: https://savingslast.com/rmd-calculator/. The same engine is the MCP tool rmd_calculate at https://savingslast.com/mcp.* ## What a $500,000 account must pay out at each age | Age in the distribution year | Factor | RMD on $500,000 | Of the balance | | --- | --- | --- | --- | | 73 | 26.5 | $18,868 | 3.77% | | 75 | 24.6 | $20,325 | 4.07% | | 80 | 20.2 | $24,752 | 4.95% | | 85 | 16 | $31,250 | 6.25% | | 90 | 12.2 | $40,984 | 8.20% | Uniform Lifetime Table, 26 CFR § 1.401(a)(9)-9(c), in force since 2022. The balance is the account value on 31 December of the year before. The division is the whole calculation. The balance on the last day of the prior year, divided by the factor for the age you reach in the distribution year. The factor falls every year, so the percentage rises even when the balance does not. ## The age depends on the year you were born | Born | First RMD at | Rule | | --- | --- | --- | | 1950 or earlier | 72 (or 70½ before 2020) | Already taking them | | 1951 to 1959 | **73** | SECURE 2.0, section 107 | | 1960 or later | **75** | SECURE 2.0, section 107 | Born in 1953, you turned 73 in 2026, so 2026 is your first distribution year. Born in 1960, your first RMD year is 2035. ## The first one is due on 1 April, and that is a trap The first RMD may be delayed until 1 April of the year after you reach the starting age. The second is due by 31 December of that same year. Take the first one late and two distributions land in one tax year, which can push the second into a higher bracket and raise Medicare premiums two years later. Every RMD after the first is due by 31 December of its own year. ## What missing it costs The excise tax on an RMD shortfall is **25%** of the amount not taken. It drops to **10%** if the shortfall is withdrawn and a corrected return is filed within the correction window. In most cases that window closes at the end of the second year after the RMD was due. The authority is IRC § 4974, as amended by SECURE 2.0 § 302. The shortfall is reported on Form 5329, and the IRS may waive the tax for reasonable cause on request. ## Which accounts have one - **Traditional, SEP and SIMPLE IRAs.** Yes, from the starting age, whether or not you are working. IRAs may be added together and the total taken from any one of them. - **401(k), 403(b) and 457(b) plans.** Yes, calculated separately for each plan. If you are still working for that employer and own no more than 5% of it, the plan may let you wait until you retire. - **Roth IRAs.** No RMD while you are alive. - **Roth 401(k) and other designated Roth accounts.** No RMD from 2024 onward (SECURE 2.0, section 325). - **Inherited accounts.** Different rules and, for most non-spouse heirs, a ten-year clock. See the [inherited IRA page](https://savingslast.com/inherited-ira-calculator/). ## Three things the projection above shows The percentage climbs from 3.77% at 73 to 4.95% at 80 and 8.20% at 90. An account earning 5% holds its value through the late 70s and starts to fall in the 80s. An RMD is a floor, not a plan. You may take more. Money you do not need can go straight to a taxable account. From 70½ it can go to charity as a qualified charitable distribution, which counts toward the RMD without counting as income. ## Before 31 December, write down two things The exact balance on the prior 31 December, from the statement. The factor for your age, from the table. That is the whole record. If the custodian's figure differs from yours, look at three things. A different balance date. An age off by one. A spouse more than ten years younger, which moves you to the Joint and Last Survivor Table. Reconcile before the money moves, because a distribution cannot be put back. Two other questions decide more than the RMD does. Is a [72(t) series](https://savingslast.com/72t-distribution-calculator/) or a Roth conversion in the years before 73 worth it to shrink the balance this table is applied to? And does your [state](https://savingslast.com/retirement-taxes-by-state/) tax the distribution at all? ## Frequently asked questions **What is the RMD on a $500,000 IRA?** $18,868 at 73, $20,325 at 75, $24,752 at 80 and $40,984 at 90, using the Uniform Lifetime Table and a $500,000 balance on the prior 31 December. Enter your own balance and birth year above. **How much are RMDs at age 73?** 3.77% of the prior 31 December balance, because the Uniform Lifetime factor at 73 is 26.5. On $1,000,000 that is $37,736. **What is the RMD age in 2026?** 73 for anyone born from 1951 to 1959, and 75 for anyone born in 1960 or later. If you turned 73 in 2025 and delayed your first RMD, it is due by 1 April 2026, and the 2026 RMD is due by 31 December 2026. **How do I calculate my RMD for 2026?** Take the account balance on 31 December 2025 and divide it by the Uniform Lifetime Table factor for the age you reach in 2026. The calculator above does the division and shows the factor it used. **What are the new RMD rules?** SECURE 2.0 moved the starting age to 73 from 2023 and to 75 for people born in 1960 or later, cut the penalty for a missed RMD from 50% to 25%, with 10% if corrected in time, and ended lifetime RMDs on Roth 401(k) accounts from 2024. **Do I have to take my RMD as one payment?** No. The requirement is the total for the year. Monthly, quarterly or a single payment all satisfy it as long as the full amount is out of the account by the deadline. ## Related calculators - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) 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. --- # Roth Conversion Calculator > What a Roth conversion costs in 2026 federal tax, how much fits in your 12%, 22% or 24% bracket, and the Medicare and ACA cliffs it can cross. From the IRS tables. Source: https://savingslast.com/roth-conversion-calculator/ Markdown: https://savingslast.com/roth-conversion-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A married couple, both 67, has $50,000 of IRA withdrawals and $40,000 of Social Security. Converting $50,000 to a Roth in 2026 costs them **$6,708** of federal tax. That is 13.4% of the amount converted. Enter your own year. The calculator shows the cost, the room left in each bracket, and whether the conversion crosses a Medicare or marketplace cliff. Rules and tables checked against the IRS sources on September 2, 2026. [Corrections log](https://savingslast.com/corrections/). *Interactive calculator on the page: https://savingslast.com/roth-conversion-calculator/. The same engine is the MCP tool roth_conversion_cost at https://savingslast.com/mcp.* ## What the same $50,000 conversion costs at three income levels | Ordinary income before converting | Federal tax without | With the conversion | Cost of converting | Rate on the converted dollars | | --- | --- | --- | --- | --- | | $30,000 | $0 | $7,484 | **$7,484** | 15.0% | | $50,000 | $3,176 | $9,884 | **$6,708** | 13.4% | | $90,000 | $8,684 | $17,571 | **$8,887** | 17.8% | Married filing jointly, both 67, $40,000 of Social Security, no capital gains, 2026 tables, standard deduction with the age additions and the senior deduction. Federal only. The cost is not the bracket rate. At $30,000 of other income the conversion pulls more Social Security into taxable income and eats the senior deduction. The rate on the converted dollars ends above 12%, although the couple never leaves the 12% bracket. That is the arithmetic the bracket table hides, and it is why the calculator computes the whole return twice rather than multiplying by a rate. ## The bracket is a ceiling you choose On the $50,000 example, a conversion of **$64,300** keeps ordinary taxable income inside the 12% bracket. **$168,735** fills the 22% bracket and **$355,050** fills the 24%. Which ceiling is right depends on one comparison. The rate you pay now, against the rate you expect when the money would otherwise come out: at 73 or 75 as a required distribution, or in your heirs' hands. Convert while now is lower than later. Stop at the bracket top where that stops being true. ## Two cliffs the bracket table does not show This is the part that costs people real money, and it should be read before the bracket is chosen. Both cliffs are all-or-nothing, and both are set by income in the year of the conversion. **Medicare premiums, two years later.** Part B premiums for 2028 are set from 2026 modified adjusted gross income. Cross $218,000 on a joint return ($109,000 single) by one dollar and each spouse pays an extra $974 a year for Part B. A Part D surcharge comes on top. The next line, $274,000 joint, raises it to $2,435 a year each. The calculator prints the tier and the room left to the next one. It matters from age 63, because income at 63 sets the premium at 65. **The marketplace subsidy line, under 65.** For 2026 coverage the premium tax credit ends at 400% of the poverty line: **$84,600** for a household of two, $62,600 for one person. One dollar over and the whole credit is gone, not reduced. Marketplace income counts the entire Social Security benefit and tax-exempt interest, so it runs higher than AGI. Cost-sharing reductions on Silver plans stop earlier, at 250% of the line, $52,875 for two. Tick the marketplace box above and the calculator shows where your conversion lands against both lines. Two smaller slopes sit inside the tax itself, and both are already in the figure above. Each dollar of conversion can make up to 85 cents of Social Security taxable. Above $150,000 joint ($75,000 single), the $6,000 senior deduction shrinks by six cents per dollar. ## When a conversion is the wrong move - **You are under 59½ and would pay the tax out of the IRA.** The withheld tax is a distribution, and the 10% additional tax applies to it. Pay the tax from a taxable account or do not convert. - **You need the converted money within five years and are under 59½.** Each conversion carries its own five-year clock. Take the converted principal out before the clock ends and before 59½, and the 10% additional tax applies to it, although the income tax was already paid. - **Your heirs will be in a lower bracket than you are now.** They pay the tax then, at their rate. Converting now pre-pays it at yours. - **This is a high-income year.** A severance, a bonus, a property sale. The conversion stacks on top of all of it. Next year is usually cheaper. - **It crosses a cliff by a small amount.** Convert up to the line this year and the rest next year. The cliffs are annual. ## Before you convert, write down four numbers Ordinary income received so far this year. The Social Security and gains you expect by 31 December. The bracket top you are converting to. And the Medicare threshold two years out, if you are 63 or older. Enter them above, convert to the figure the calculator gives, and keep the page. A conversion cannot be undone; recharacterization ended in 2018. Two other questions decide more than the conversion does. What will the [required minimum distribution](https://savingslast.com/rmd-calculator/) be on the balance you do not convert? If you are under 59½ and need income rather than a tax move, is a [72(t) series](https://savingslast.com/72t-distribution-calculator/) the better tool? ## Frequently asked questions **How much tax will I pay on a Roth conversion?** The conversion is added to your ordinary income for the year and taxed through the brackets, after deductions. A married couple, both 67, with $50,000 of IRA withdrawals and $40,000 of Social Security pays $6,708 to convert $50,000. A single 60-year-old with $40,000 of other income pays $8,350. Enter your own figures above. **What is the biggest Roth conversion mistake?** Crossing an all-or-nothing line by a few dollars: the Medicare IRMAA threshold two years before Medicare, or the marketplace subsidy line at 400% of the poverty level. The second is paying the tax from the IRA before 59½, which makes the withheld tax a penalized distribution. **What is the break-even point for a Roth conversion?** There is no single one. A conversion pays off when the rate you pay now is lower than the rate the money would face later, as a required distribution or in an heir's hands. If the two rates are equal, a Roth still wins on flexibility, because it has no required distributions. If your rate now is higher, it loses. **When should you not do a Roth conversion?** In a high-income year, when it crosses a Medicare or marketplace cliff, when you would pay the tax from the IRA before 59½, or when your heirs will be in a lower bracket than you. **Does a Roth conversion affect Medicare premiums?** Yes. Medicare sets Part B and Part D premiums from your modified adjusted gross income two years earlier, and a conversion is part of that income. The 2026 surcharge starts above $109,000 for a single filer and $218,000 for a joint return. **Does a Roth conversion count as income for ACA subsidies?** Yes, in the year of the conversion. For 2026 coverage the premium tax credit ends at 400% of the poverty line, which is $84,600 for a household of two. A conversion that takes you over it costs the whole credit. ## Related calculators - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) 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. --- # Roth IRA Withdrawal Calculator > Roth withdrawals are tax free in retirement and there are no required distributions. See how long a Roth lasts, plus the ordering and five-year rules. Source: https://savingslast.com/roth-ira-withdrawal-calculator/ Markdown: https://savingslast.com/roth-ira-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A Roth IRA is the only major account where the number on the statement is the number you can spend. No tax on qualified withdrawals, no required minimum distributions, and nothing added to the income that makes your Social Security taxable. *Interactive calculator on the page: https://savingslast.com/roth-ira-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Why the tax field stays at zero Qualified Roth withdrawals are not taxable income, so there is no gross-up. That makes a Roth dollar worth meaningfully more than a traditional dollar — a $400,000 Roth is comparable to roughly $500,000 in a traditional IRA for someone in the 22% bracket. It is also why a Roth is usually the last account you should spend. ## The two five-year rules - **For earnings to be tax free**, you must be 59½ or older *and* have held any Roth IRA for at least five tax years. The clock starts on 1 January of the year of your first contribution and never restarts, even if you close and reopen accounts. - **For each conversion**, a separate five-year clock applies before the converted amount can be withdrawn penalty free if you are under 59½. Converting at 57 means waiting until 62 to touch that particular slice without penalty. ## The withdrawal ordering rules The IRS treats Roth withdrawals as coming out in a fixed order, which is unusually favourable: 1. **Your direct contributions** — always tax and penalty free, at any age, for any reason. 2. **Converted amounts** — oldest first, tax free, penalty free after their own five years or after 59½. 3. **Earnings** — last out, tax free only if the account is qualified. Because contributions come out first, a Roth doubles as an emergency fund in a way no other retirement account does. ## 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. ## No required minimum distributions Roth IRAs have never had RMDs for the original owner, and since 2024 Roth 401(k)s do not either. That means a Roth can be left untouched to compound for as long as you like, which makes it the natural account to spend last and to leave to heirs — they get ten years of tax-free growth before they must empty it. ## Where the Roth fits in the drawdown order The textbook sequence is taxable brokerage first, then traditional, then Roth. The refinement that matters more: use the low-income years before Social Security and required distributions to withdraw from traditional accounts or convert them, filling the lower brackets deliberately. Then let the Roth carry the years when a large withdrawal would otherwise push you over an [Social Security taxation](https://savingslast.com/is-social-security-taxable/) or Medicare premium threshold — a Roth withdrawal crosses neither. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **Are Roth IRA withdrawals taxable?** Qualified withdrawals are entirely tax free. A withdrawal is qualified once you are 59½ or older and have held a Roth IRA for at least five tax years. Your own contributions can be withdrawn tax and penalty free at any age regardless. **Do Roth IRAs have required minimum distributions?** No, not for the original owner. Roth 401(k)s were also freed from RMDs starting in 2024. Inherited Roth IRAs must still be emptied within ten years, though the withdrawals are tax free. **What is the Roth five-year rule?** There are two. One governs whether earnings are tax free — five tax years from your first-ever Roth contribution. The other applies separately to each conversion and governs the 10% penalty for those under 59½. **Should I spend my Roth first or last?** Usually last. Roth money grows tax free, has no required distributions, does not raise your taxable income, and passes to heirs efficiently. Spending taxable and traditional money first while filling the lower brackets is generally the higher-value order. ## Related calculators - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) - [Lump sum vs annuity](https://savingslast.com/pension-lump-sum-vs-annuity-calculator/) 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. --- # Rule of 55 Calculator > The rule of 55 lets you withdraw from your current employer 401(k) penalty-free after leaving at 55+. See how long the money lasts and the mistake that voids it. Source: https://savingslast.com/rule-of-55-calculator/ Markdown: https://savingslast.com/rule-of-55-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. If you leave your job in or after the calendar year you turn 55, you can take money out of *that employer’s* 401(k) without the 10% early-withdrawal penalty. Here is what that money supports — and the one rollover that destroys the exemption. *Interactive calculator on the page: https://savingslast.com/rule-of-55-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## How the rule works - You must **separate from service** — quit, be laid off, or retire — in or after the calendar year you turn 55. Leaving at 54 and waiting until 55 does not qualify. - It applies only to the plan of the employer you just left. Old 401(k)s from previous jobs are not covered. - Withdrawals are still taxed as ordinary income. The rule waives the 10% penalty, not the tax. - Public-safety employees — police, firefighters, EMS — can use age 50, or 25 years of service, under a parallel provision. - The plan must permit partial withdrawals. Some plans only allow a full lump sum, which would be a tax disaster. Check the summary plan description before you resign. ## The mistake that voids it **Do not roll that 401(k) into an IRA.** The rule of 55 is a 401(k) provision; IRAs do not have it. Once the money is in an IRA the 10% penalty applies until 59½, and the only escape is a 72(t) schedule that locks you in for five years. Every rollover-happy piece of advice about "consolidating your accounts" is wrong for a 55-year-old who needs this money before 59½. The workable order is: leave the current-employer 401(k) where it is, live on it from 55 to 59½, and roll it over afterwards when the exemption no longer matters. ## 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. ## Bridging 55 to 59½ You need roughly four and a half years of spending from that one plan. If the balance in it is too small, the alternatives are a 72(t) series from an IRA, taxable brokerage money, or Roth contributions — which can always be withdrawn tax and penalty free. Combining sources usually beats forcing one to carry everything. ## Tax planning while you use it These are low-income years — no salary, no Social Security, no required distributions. Withdraw enough to fill the lower tax brackets rather than the bare minimum, and consider Roth conversions on top. The alternative is leaving those brackets unused and paying more later when Social Security and required distributions arrive together. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **What is the rule of 55?** An IRS provision that waives the 10% early-withdrawal penalty on distributions from the 401(k) or 403(b) of the employer you leave, if you separate from service in or after the calendar year you turn 55. Income tax still applies. **Does the rule of 55 apply to IRAs?** No. It is a workplace-plan provision only. Rolling a qualifying 401(k) into an IRA permanently forfeits the exemption for that money, which is the single most expensive mistake people make with this rule. **Can I use the rule of 55 and then go back to work?** Yes. The exemption depends on having separated from service at 55 or later, not on staying unemployed. Returning to work does not claw back withdrawals already taken, though a new employer plan will not be covered. **What if I have several old 401(k)s?** Only the plan of the employer you just left qualifies. Some plans accept incoming rollovers, so consolidating older 401(k)s *into* the current employer plan before you resign can bring more money under the exemption. Do it before separating, not after. ## Related calculators - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) 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. --- # Savings Withdrawal Calculator > Calculate how long savings last with monthly withdrawals, interest and inflation. See the balance year by year and your safe withdrawal amount. Source: https://savingslast.com/savings-withdrawal-calculator/ Markdown: https://savingslast.com/savings-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. For savings accounts, CDs, money market funds or any pot you draw on regularly. Enter the balance, the monthly withdrawal and the interest rate to see how many years it lasts. *Interactive calculator on the page: https://savingslast.com/savings-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Savings vs. investments: set the rate honestly High-yield savings accounts and money market funds paid 4–5% through 2023–2025, which made a $100,000 cushion feel like it could fund $400 a month forever. Those rates float with the Federal Reserve and can halve within a year. For money you will draw on for more than a few years, either use a lower rate (2–3%) or test what happens if rates drop after year two. CDs lock a rate but only for their term. ## 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. ## When savings should fund withdrawals - **A bridge to Social Security or a pension.** If you retire at 62 but want to delay Social Security to 67–70 for the higher benefit, savings fund the gap. This calculator tells you exactly how much you need in the bridge account. - **A sabbatical or career break.** Set inflation to 0 for a short horizon and enter your monthly budget. - **An inheritance or windfall.** The "to last N years" boxes show what a lump sum converts to as monthly income. - **Emergency fund drawdown during unemployment.** Enter your monthly essential spending and see how many months of runway you have. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Keep the withdrawal and the account matched Money you will spend within two years belongs in cash or short CDs, where a stock market fall cannot touch it. Money you will not need for ten or more years can sit in a diversified portfolio where the expected return is higher. Splitting one pot into those two layers — and refilling the cash layer from the investment layer in good years — is the simplest way to make savings last longer without taking on risk you cannot afford. ## Frequently asked questions **How long will $100,000 last if I withdraw $1,000 a month?** At 4% interest and 2.5% inflation, roughly 9 years. With no interest it lasts 8 years 4 months; at 0% inflation and 4% interest it stretches to about 10 years. **How long will $50,000 last at $500 a month?** About 9 years at 4% interest with inflation-adjusted withdrawals — almost the same as the $100k / $1,000 case, because the ratio of withdrawal to balance is what matters. **Does interest on savings count as income for taxes?** Yes, interest is taxed as ordinary income in the year it is earned, even if you do not withdraw it. The tax field here applies to withdrawals; for savings interest, simply reduce the rate you enter by your marginal tax rate. **Is it better to withdraw monthly or yearly?** Monthly withdrawals leave more money earning interest for longer, so they last very slightly longer than a single annual withdrawal of the same total. The difference is small — under 1% of the balance per year. ## Related calculators - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) 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. --- # SEP IRA Withdrawal Calculator > How long a SEP IRA lasts in retirement, plus the distribution rules for the self-employed: 59½, required distributions at 73, and the tax on every withdrawal. Source: https://savingslast.com/sep-ira-withdrawal-calculator/ Markdown: https://savingslast.com/sep-ira-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A SEP IRA is the self-employed retirement account with the highest contribution ceiling — and on the way out, it behaves exactly like a traditional IRA. Enter your balance to see how long it supports the income you need. *Interactive calculator on the page: https://savingslast.com/sep-ira-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Distribution rules in one place - **Withdrawals are ordinary income.** Contributions were deducted, so tax is due on the way out — enter your expected rate above. - **10% penalty before 59½**, unless an exception applies. The [rule of 55](https://savingslast.com/rule-of-55-calculator/) does *not* apply, because a SEP is an IRA. The route to early money is a [72(t) series](https://savingslast.com/72t-distribution-calculator/). - **Required minimum distributions from 73** (75 for those born in 1960 or later), calculated on the prior 31 December balance. - **No loan provision.** Unlike a 401(k), you cannot borrow from a SEP IRA. - **Roth SEP contributions became possible under SECURE 2.0**, so some SEP balances may now hold Roth money with different rules — check with your provider. ## The self-employed retiree's specific problem SEP IRA holders are usually business owners, which means three things a salaried retiree does not face: income that stops abruptly rather than at a chosen date, no employer retiree health coverage, and often a business sale that lands as a large taxable event in a single year. The last one matters most — a sale year is a terrible year to also take large SEP withdrawals, and a superb year to take almost none. ## 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 gap years are worth planning Between retiring and 73 there is usually a window with no salary, no Social Security if you delay it, and no required distributions. That is the cheapest tax window you will get. Taking SEP withdrawals or converting to Roth in those years shrinks the balance that will later be forced out at 73, when it stacks on top of Social Security and can push Medicare premiums up through the IRMAA thresholds. ## Consolidation is usually worth it Many self-employed people accumulate a SEP, a solo 401(k) from a different year, and one or two IRAs from old jobs. Required distributions are calculated per account type with different aggregation rules, and it is easy to miss one — the penalty for a missed distribution is 25%, reduced to 10% if corrected promptly. Consolidating to a single IRA before 73 removes the risk entirely. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **How are SEP IRA withdrawals taxed?** As ordinary income, at your marginal rate in the year you take them. Contributions were tax-deductible when made, so the tax is deferred rather than avoided. There is no capital gains treatment regardless of how the money was invested. **Can I withdraw from a SEP IRA before 59½?** Yes, but with a 10% penalty on top of income tax unless an exception applies. The rule of 55 does not cover SEP IRAs because they are IRAs, not workplace plans — a 72(t) series is the usual route to penalty-free early access. **When do SEP IRA required distributions start?** Age 73 for people who reached 72 after 2022, and 75 for those born in 1960 or later. The first distribution may be deferred to 1 April of the following year, but that doubles up two distributions in one tax year. **Can I still contribute to a SEP IRA after retiring?** Only if you still have self-employment income. SEP contributions come from the business, so once the business income stops, contributions stop — even though you may continue contributing to a regular IRA if you have any earned income. ## Related calculators - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) 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. --- # SIMPLE IRA Withdrawal Calculator > SIMPLE IRA withdrawals in the first two years carry a 25% penalty, not 10%. See the rules, the rollover trap, and how long your balance lasts in retirement. Source: https://savingslast.com/simple-ira-withdrawal-calculator/ Markdown: https://savingslast.com/simple-ira-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. SIMPLE IRAs follow traditional IRA rules with one expensive exception: withdraw within two years of your first contribution and the early-withdrawal penalty is **25%**, not 10%. Everything else works as you would expect. *Interactive calculator on the page: https://savingslast.com/simple-ira-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The two-year rule The clock starts on the date of the first contribution your employer made to your SIMPLE IRA — not the date you joined, and not 1 January. Within that two-year window: - An early withdrawal before 59½ carries a **25% penalty** rather than 10%, on top of income tax. - You may only roll the money to another SIMPLE IRA. Rolling to a traditional IRA or a 401(k) inside the window is treated as a **full taxable distribution** plus the 25% penalty — a very expensive filing error. After two years, the account behaves like any traditional IRA: 10% early penalty, unrestricted rollovers, ordinary income tax on withdrawals. ## Everything else - **Withdrawals are ordinary income** — contributions were pre-tax. - **Required minimum distributions from 73** (75 for those born in 1960 or later), even if you are still working for the employer that sponsors the plan. - **The rule of 55 does not apply.** A SIMPLE IRA is an IRA, so early access before 59½ runs through a [72(t) series](https://savingslast.com/72t-distribution-calculator/) or one of the standard exceptions. - **No loans.** IRAs cannot be borrowed against. ## 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. ## What to do with an old SIMPLE IRA Once the two years have passed, consolidating an old SIMPLE IRA into your main traditional IRA is almost always the right move: one account, one required distribution calculation, one set of investment choices, and no chance of missing a distribution and paying the 25% penalty for a missed RMD. Do it as a direct trustee-to-trustee transfer rather than taking a cheque, which avoids the 60-day rule and the once-per-year indirect rollover limit entirely. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## Frequently asked questions **What is the SIMPLE IRA 2-year rule?** For two years from the date of the first contribution to your SIMPLE IRA, early withdrawals before 59½ carry a 25% penalty instead of 10%, and the money can only be rolled into another SIMPLE IRA. After two years the normal traditional IRA rules apply. **Can I roll a SIMPLE IRA into a traditional IRA?** Yes, once the two-year period has passed. Doing it earlier is treated as a complete taxable distribution plus the 25% penalty, so check the date of your first contribution before initiating any transfer. **How are SIMPLE IRA withdrawals taxed in retirement?** As ordinary income at your marginal rate. Contributions were made pre-tax through salary deferral, so tax is due on the way out — enter your expected retirement rate in the calculator above. **Do SIMPLE IRAs have required minimum distributions?** Yes, from age 73 (75 for those born in 1960 or later), on the same schedule as any traditional IRA. Unlike a workplace 401(k), there is no "still working" exception for a SIMPLE IRA. ## Related calculators - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) 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. --- # TSP Withdrawal Calculator > For federal employees and military: model TSP installments, tax, growth and inflation to see how long your Thrift Savings Plan lasts. Source: https://savingslast.com/tsp-withdrawal-calculator/ Markdown: https://savingslast.com/tsp-withdrawal-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. For federal employees, postal workers and service members. Enter your TSP balance and the monthly installment you plan to take; the calculator shows how long it lasts and the safe amount for 30 years. *Interactive calculator on the page: https://savingslast.com/tsp-withdrawal-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## TSP in the FERS three-legged stool The FERS pension and Social Security (or the FERS supplement before 62) cover a large share of most federal retirees' needs, so the TSP's job is the remaining gap — typically $1,000–3,000 a month. Enter that gap, not your full budget. Because TSP funds are among the cheapest in existence (expense ratios around 0.05%), a 5% return assumption is reasonable for a mix of C, S, I and F funds; use 3–4% if you are mostly in the G Fund. ## 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. ## TSP withdrawal options - **Installment payments** — fixed dollar amount monthly, quarterly or annually, changeable at any time; or life-expectancy-based amounts. This calculator models the fixed-dollar option with an inflation increase you set. - **Partial withdrawals** — unlimited single withdrawals of $1,000 or more, once every 30 days. - **Annuity purchase** — convert some or all to a MetLife life annuity. Irreversible; compare the monthly payout to the "to last 30 years" box above before committing. - **Age 55 rule** — penalty-free if you separate in or after the year you turn 55 (age 50, or 25 years of service, for public-safety employees). - **RMDs** — apply from age 73; Roth TSP balances are exempt from lifetime RMDs from 2024. - **Tax withholding** — the TSP withholds 20% federal on most withdrawals unless you elect otherwise for installments over 10 years. ## 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.** Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover. ## G Fund safety vs. running out Many retirees move everything to the G Fund at retirement for safety. It cannot lose money, but at roughly 4% it barely beats inflation, so a 4% withdrawal means spending principal from day one. The default run above at 5% shows the balance lasting decades; rerun it at 3.5% and watch the horizon shrink. Holding 1–3 years of withdrawals in G and the rest in the L Income or a C/S/I mix is the usual compromise. ## Frequently asked questions **How long will $500,000 in TSP last?** Taking $2,000 a month after 15% tax at 5% return and 2.5% inflation, about 23 years. At $3,000 a month it drops to about 14 years. **Can I withdraw from TSP at 57 without penalty?** Yes, if you separated from federal service in or after the year you turned 55 — the minimum retirement age for most FERS employees is 57, so this applies to a typical immediate retirement. **Are TSP withdrawals taxed?** Traditional TSP withdrawals are federal ordinary income; most states tax them too, though several exempt some federal retirement income. Roth TSP qualified withdrawals are tax-free. **Should I take TSP installments or buy the annuity?** Installments keep control and legacy value; the annuity removes longevity risk but locks in today’s rates permanently. Compare the annuity quote to the 30-year sustainable amount above; if the annuity is not meaningfully higher, installments usually win. ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # Can You Work While Taking a 72(t)? > You can work as much as you like while a 72(t) runs. The rule that traps people is about the account, not the job — and it costs the whole series. Source: https://savingslast.com/can-you-work-while-taking-a-72t/ Updated: 2026-08-27 Author: Muhammad Ejaz Markdown: https://savingslast.com/can-you-work-while-taking-a-72t.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. By [Muhammad Ejaz](https://savingslast.com/about/) · *Finance content creator* · Updated 27 August 2026 You are 54, you have left your job, and a 72(t) series pays you every year until you turn 59½. Then a former colleague calls with contract work. You can take it. No rule in section 72(t) requires you to stay out of work. ## Working does not break the series Nothing in the rule tests your employment once the series is running. The IRS lists what ends a series early, and a job is not on the list. You can work full time, part time, contract, or start a business, and the payments continue exactly as before. What can break it is what happens to the account afterward. Say your series pays $30,000 a year and you are three years in. You have taken $90,000. Break it now and the recapture tax is 10% of that, so $9,000, plus interest for the years it went unpaid. There is one employment condition. It applies before you start, not after. ## The separation rule applies before you start, and only to workplace plans Two different accounts, two different answers. Say the series runs from a **401(k)**, a 403(a) annuity plan, or a 403(b). The IRS requires that you must be separated from service with the employer maintaining the plan before the payments begin. That is a condition on starting. It is not a condition on staying unemployed afterward. If the series runs from an **IRA**, that requirement does not apply at all. The IRS says so directly: This does not apply to IRAs or individual retirement annuities. So a reader with an IRA-based series never had to stop working. A reader with a plan-based series had to leave the employer who held that plan before the first payment, and is free to work anywhere after that. ## The rule that actually traps people who go back to work This is the part that frightens people, and it should. Once the series is established, the IRS forbids two things on that account. Its words: the taxpayer cannot make any additions to the account, nor take any payments from the account, other than the SoSEPP payments. Read that as an employed person and the trap is visible. A new job comes with a retirement plan. You want to roll an old balance in, or consolidate, or contribute. Do any of that **to the account the series is attached to** and you have modified the series. The account is frozen for the term. Money does not go in. Money does not come out except the scheduled payment. Three things this does not stop you doing: - **A different IRA.** The restriction is on the account the series runs against, not on you. A separate IRA is a separate account. - **A new employer's 401(k).** Different account, different plan, untouched by the series. - **Letting the account rise or fall.** The IRS states that changes to the account due to investment experience do not affect this prohibition. Market movement is not a contribution. The defense is the one that protects a 72(t) generally. Split the IRA before the series starts, so the series runs against one account and the other stays outside it. An account that is not carrying the series can receive contributions and rollovers for the whole term. Say a new employer offers to consolidate your old accounts. The SEPP account is not available until the term ends. Say that to the administrator in those words. ## Two things end the series without the retroactive penalty For an IRA owner, two. Death, and disability as the code defines it. A third exit sits in the statute and reaches almost nobody reading this. Nothing else ends a series early. Not a job offer, not a market fall, not a change of mind. The statutory exits sit at IRC §72(t)(4)(A)(ii). The definition of disability is §72(m)(7), and it is far narrower than the everyday meaning of the word. A reader who assumes the ordinary meaning has no exit at all. Read the section before relying on it. That third exit is §72(t)(10), for a qualified public safety employee separating from a governmental plan. It does not reach an IRA at all. ## Who should not rely on this Working while the series runs is permitted. The combination is still wrong for some people. Skip it if a new job would push you into wanting the money back inside the account. The series has no reverse gear. Skip it if the account carrying the series is where a new employer's rollover would naturally land, and you have no second account to receive it. Skip it if going back to work makes the payment unwanted income. You cannot turn the payment off. A 72(t) that outlives its usefulness still pays out, is still taxable, and still counts toward the income figure that sets your ACA subsidy. That last one is the common regret. People start a series expecting no earned income, then return to work, and the locked payment sits on top of a salary at a higher marginal rate for years. ## If you have already gone back to work and are worried Most of what people arrive convinced they have broken is not a modification. Earning a salary is not. Contributing to a new employer's plan is not. Opening a different IRA is not. A change in the account's value from market movement is not, and the IRS says so in terms. Two things are the real cases. Money you put into the SEPP account. Anything you took out of it beyond the scheduled payment. Take either to a professional today rather than next April. The rules permit one legitimate change. Notice 2022-6 §3.03(b) allows a one-time switch to the required minimum distribution method. That switch will not be treated as a modification. It lowers the payment. It is the escape valve for a series that has become too large, which is exactly what a return to work can cause. Once you switch, any later change away from the RMD method is a modification. ## What the payment costs you in tax while you are working The payment is penalty-free. It is not tax-free. It is taxable as ordinary income, federally and in most states, and stacking it on a salary is what makes returning to work expensive. - **Federal tax at your combined marginal rate**, not the rate the payment would attract on its own. - **State tax in most states.** Some treat a distribution taken before 59½ differently from one taken after. Check the page for your state. - **ACA subsidies.** The figure that matters is modified adjusted gross income, not the withdrawal alone. Salary plus a locked payment can lift you out of subsidy eligibility for the rest of the term, and taking less later will not restore what you lost. The tax withheld from a scheduled payment is part of that payment. Money taken on top of it, to cover a tax bill, is not. That is a modification, and it costs you the whole series retroactively. ## The mechanics, since nobody publishes them **How do I start it?** You file nothing. There is no form, no election, and nobody to notify. You take the first payment. **What do I file each year?** Check box 7 on the 1099-R your custodian sends each January. Code 2 means nothing more to file. Code 1 means you file Form 5329 with your return and enter exception code 02, every year the plan runs. Most custodians use code 1. **What do I keep?** The balance statement and its date. The calculation with every input. The first distribution confirmation. Each year's 1099-R and Form 5329. Keep them seven years past the end of the plan. **How does it end?** On the later of the fifth anniversary of the first payment and the day you turn 59½. Nothing is registered anywhere, so nothing tells you it has ended. Put the date in a calendar the day you start. **What if my custodian disagrees with my number?** You carry the consequence, not the custodian. Their figure is not an approval and their 1099-R coding is not a ruling. ## What this page does not settle Two things sit outside it. A series already broken is not something a published page can fix, because the amount owed depends on what you took and when. Take the dates and the amounts to a CPA or an enrolled agent who has handled a SEPP before. A plan-based series has a second rulebook. The 401(k) still sitting with a former employer follows that plan's own distribution rules on top of the IRS rules. Plans differ. Ask the administrator whether the plan permits a scheduled series at all. Many do not. I am not a financial advisor, and nothing here is advice about your situation, because I do not know your situation. What I can show you is the rule, the IRS section it comes from, and where it breaks. ## Before you take the job Three questions settle it. Does the new employer's plan want to consolidate your old accounts? If yes, find out today whether the SEPP account is one of them, because that consolidation is the modification. Do you have a second IRA outside the series to receive new contributions? If not, the term is a contribution freeze, and that is a real cost of the series nobody quotes. Would you rather the payment stopped? It cannot. If the honest answer is yes, look at the one-time switch to the RMD method before you accept, not after. Rules stated as of August 2026, under IRS Notice 2022-6. The rate ceiling moves monthly. The tables and the notice do not. ## More guides - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Run the numbers - [How long will my money last](https://savingslast.com/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [All 117 calculators](https://savingslast.com/calculators/) --- # Guides > Plain explanations of the 4% rule, safe withdrawal rates and the strategies for drawing down retirement savings, each with the calculator attached. Source: https://savingslast.com/guides/ Markdown: https://savingslast.com/guides.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The questions behind the calculators, answered properly. Each guide carries the calculator itself, so you can stop reading and run your own number at any point. - [What a 401(k) Hardship Withdrawal Actually Leaves You: Withdraw $20,000 for a hardship and roughly $13,600 lands, on the assumptions below. To end up with $20,000 you have to request about $29,400.](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Can You Work While Taking a 72(t)?: You can work as much as you like while a 72(t) runs. The rule that traps people is about the account, not the job — and it costs the whole series.](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What Is the 4% Rule for Retirement?: The 4% rule explained: where it came from, what it actually promises, the four assumptions that break it, and what researchers say the safe rate is now.](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe Withdrawal Rate for 2026: Morningstar puts the 2026 safe starting withdrawal rate at 3.9% for a 30-year retirement. What that assumes, how it has moved since 2021, and what changes it.](https://savingslast.com/safe-withdrawal-rate-2026/) - [Retirement Withdrawal Strategies Compared: Fixed real, fixed percentage, guardrails, the RMD method and buckets — what each strategy does to your income, and which one suits which retiree.](https://savingslast.com/retirement-withdrawal-strategies/) --- # Retirement Withdrawal Strategies Compared > Fixed real, fixed percentage, guardrails, the RMD method and buckets — what each strategy does to your income, and which one suits which retiree. Source: https://savingslast.com/retirement-withdrawal-strategies/ Updated: 2026-08-24 Author: Muhammad Ejaz Markdown: https://savingslast.com/retirement-withdrawal-strategies.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. By [Muhammad Ejaz](https://savingslast.com/about/) · *Finance content creator* · Updated 24 August 2026 Every drawdown strategy trades the same two things against each other: how steady your income is, and how certain you are it lasts. Nothing escapes that trade-off — the strategies just place the dial differently. ## The trade-off every strategy makes You can have an income that never changes, or an income that never runs out. You cannot have both, because markets do not cooperate. A fixed income means the portfolio absorbs all the volatility, and sometimes it loses. A variable income means you absorb it, and your spending moves instead. Understanding that is most of the work. The five strategies below are just different answers to the question of who takes the hit. ## 1. Fixed real — the 4% rule Take a set percentage in year one, then raise that dollar amount by inflation every year regardless of what markets do. **Suits** retirees with mostly fixed essential costs who value predictability above all. **Costs** you the most in safe starting income, because the rate has to survive the worst case — currently around 3.9% for 30 years. **Fails** quietly: you will not notice a problem until the balance is visibly falling, by which point the fix is much larger. [Full explanation of the 4% rule](https://savingslast.com/what-is-the-4-percent-rule/). ## 2. Fixed percentage Take the same percentage of the *current* balance every year — 4% of whatever the portfolio is worth today. **Suits** anyone whose spending is genuinely discretionary. **Cannot run out**, mathematically: a percentage of a positive number is always positive. **Costs** you stability — after a 30% market fall your income falls 30% too, in the year you can least absorb it. Almost nobody can live on this alone, which is why it usually appears combined with a pension or Social Security floor. ## 3. Guardrails Start higher, then set rules: if the withdrawal rate drifts above a ceiling, cut spending 10%; if it drops below a floor, give yourself a raise. Often called the Guyton-Klinger approach. **Suits** most people, honestly. It captures most of the upside of flexibility while bounding how bad any single year gets. Morningstar found flexible strategies of this kind supported starting rates as high as **5.7%** against 3.9% for fixed real — a difference of roughly $18,000 a year on a $1,000,000 portfolio. **Costs** you the willingness to actually make the cut when the rule says so, which is harder than it sounds in the middle of a bad market. ## 4. The RMD method Withdraw your balance divided by your remaining life expectancy each year, using the IRS Uniform Lifetime Table — the same arithmetic that governs required minimum distributions from age 73. **Suits** retirees who want a defensible rule they do not have to think about, and who are taking RMDs anyway. **Cannot run out**, for the same reason as fixed percentage. **Costs** you income early: at 73 the divisor is 26.5, so you take under 4%. It rises steeply with age, which suits spending patterns that rise with care costs but not those that front-load travel. ## 5. Buckets Hold two or three years of spending in cash, the next several years in bonds, and the remainder in equities, refilling the near buckets from the far ones over time. **Suits** people who need to sleep. Its real value is behavioural rather than mathematical: with two years of cash on hand you are never forced to sell equities into a crash, which is the mechanism that does the actual damage. **Costs** you a modest amount of long-run return through the cash drag. Most studies find it performs similarly to a straightforward rebalanced portfolio — but a strategy you can hold through a downturn beats a better one you abandon. ## Side by side | Strategy | Income steady? | Can it run out? | Typical start | | --- | --- | --- | --- | | Fixed real (4% rule) | Yes | Yes | 3.9% | | Fixed percentage | No | No | 4–5% | | Guardrails | Mostly | Unlikely | 5%+ | | RMD method | No | No | ~3.8% at 73 | | Buckets | Yes, short term | Yes | Varies | ## Test a fixed withdrawal against your own numbers The calculator models the fixed-real approach, which is the strictest of the five and therefore the right one to stress-test. If your plan survives this, the flexible strategies give you room on top. *Interactive calculator on the page: https://savingslast.com/retirement-withdrawal-strategies/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Choosing between them Three questions settle it faster than any comparison table. **How much of your spending is genuinely fixed?** If Social Security and a pension already cover your essentials, your savings fund discretionary spending, and you can afford a variable strategy that pays you more on average. If savings cover the rent, you need the stable one. **Would you actually cut?** Guardrails only work if you follow them in the year it hurts. Be honest — a plan you will abandon is worse than a conservative one you will keep. **What happens if you are wrong early?** A bad first decade is the risk that ends retirements, because you are selling into it. Holding two years of spending in cash addresses this directly and costs very little. ## Why the order of returns decides it This is the single most important picture in retirement planning, and it is why no withdrawal strategy can be judged on average returns alone. Below are two portfolios with the *same* twenty-five annual returns — same arithmetic average, same compound average — in opposite orders. Same returns, opposite order: $750,000 with $45,000 a year Both lines use the identical 25 annual returns — a 7.6% average either way. Only the order differs. The portfolio that met its bad years first runs out in year 16; the one that met them last ends with $1.4M. One retiree runs out in year 16. The other finishes with $1,404,235. Neither made a mistake, and neither picked worse investments. The difference is entirely when the bad years arrived, because withdrawals in a falling market sell more shares to raise the same income and those shares are never there for the recovery. Every strategy on this page is, in the end, an answer to that problem. Guardrails cut spending so fewer shares are sold. Buckets hold cash so none have to be. The 4% rule simply sets the starting number low enough to survive it. Most retirees end up somewhere between guardrails and buckets without naming it: a stable base from guaranteed income, a cash reserve for bad years, and discretionary spending that quietly flexes. That is a reasonable place to arrive. ## Frequently asked questions **What is the best retirement withdrawal strategy?** For most people, a flexible approach with guardrails: start higher than the 4% rule allows, then cut spending by a set amount if the withdrawal rate drifts above a ceiling. Morningstar found flexible strategies supported starting rates up to 5.7% against 3.9% for a fixed inflation-adjusted income. It only works if you actually make the cut when the rule says to. **What is the difference between the 4% rule and fixed-percentage withdrawal?** The 4% rule applies the percentage once, to your starting balance, then raises that dollar amount with inflation. Fixed-percentage recalculates against the current balance each year. The first gives steady income but can run out; the second can never run out but your income falls with the market. **Can I use the RMD tables as a withdrawal strategy before 73?** You can use the same arithmetic — balance divided by remaining life expectancy — at any age. It produces a conservative, rising withdrawal that mathematically cannot deplete the account. Required minimum distributions themselves only begin at 73, or 75 if you were born in 1960 or later. **Does the bucket strategy actually improve returns?** Usually not, compared with a straightforward rebalanced portfolio. Its value is behavioural: holding two years of cash means you are never forced to sell equities into a crash, and it makes a downturn survivable psychologically. A strategy you can hold beats a better one you abandon. ## More guides - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) ## Run the numbers - [How long will my money last](https://savingslast.com/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [All 117 calculators](https://savingslast.com/calculators/) --- # Safe Withdrawal Rate for 2026 > Morningstar puts the 2026 safe starting withdrawal rate at 3.9% for a 30-year retirement. What that assumes, how it has moved since 2021, and what changes it. Source: https://savingslast.com/safe-withdrawal-rate-2026/ Updated: 2026-08-24 Author: Muhammad Ejaz Markdown: https://savingslast.com/safe-withdrawal-rate-2026.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. By [Muhammad Ejaz](https://savingslast.com/about/) · *Finance content creator* · Updated 24 August 2026 Morningstar’s 2026 research puts the safe starting withdrawal rate at 3.9% — up from 3.7% last year. Here is what that number assumes, and the four things that move it for your own situation. ## The 2026 number **3.9%**, for a retiree who wants a fixed inflation-adjusted income and a high degree of certainty. On $1,000,000 that is $39,000 in the first year, rising with inflation thereafter. That figure is not a rule of thumb. It is the output of a model with stated assumptions, and the assumptions are the interesting part: - **30-year retirement.** Roughly age 65 to 95. - **90% probability of success.** The plan survives in nine of ten simulated futures. It is explicitly not a guarantee, and a 10% failure rate is a deliberate choice rather than an oversight. - **30–50% in equities**, the rest in bonds and cash. Lower than most people expect, and that matters: beyond a point, more stock adds volatility faster than it adds safe income. - **Fixed real spending.** You never adjust in response to markets. ## How it has moved The safe rate is recalculated each year against current bond yields and equity valuations, which is why it wanders: The safe starting withdrawal rate, 2021 to 2026 Morningstar recalculates this each year against bond yields and equity valuations. A 0.7-point swing in six years is a fifth of your retirement income, and none of it was under a retiree’s control. The 2021 low of 3.3% came when bond yields were on the floor: a portfolio with half its weight in bonds earning almost nothing cannot support much withdrawal. The recovery since is mostly the same story running in reverse. This year's rise from 3.7% to 3.9% reflects improved capital-market assumptions rather than anything a retiree did differently. The useful lesson is not the current number. It is that a 0.7-point swing in six years — a fifth of your retirement income — came entirely from conditions outside anyone's control, which is an argument for building in flexibility rather than precision. ## What moves it for you **A longer retirement.** Stretching the horizon from 30 years to 35 drops the safe rate from 3.9% to **3.5%**. Retiring at 60 rather than 65 costs you roughly a tenth of your sustainable income, before you have changed anything else. **Long-term care.** Once long-term-care costs are modelled for someone retiring and claiming Social Security at 67, the safe rate falls to **3.5%**. This is the single most commonly ignored variable in retirement planning, and it is larger than most portfolio decisions. **Flexibility.** This is the big one, and it runs the other way. Morningstar tested eight strategies that adjust spending in response to markets — skipping an inflation raise after a bad year, or trimming withdrawals when the portfolio falls below a guardrail. Those supported starting rates as high as **5.7%**. Being willing to spend less in bad years is worth more than any asset-allocation decision available to you. **Fees.** They come off the top. A 1% advisory fee is close to a quarter of a 3.9% withdrawal rate. ## What a longer retirement does to the number Morningstar publishes 3.9% for 30 years and 3.5% for 35. It does not publish further out in the free summary. Retire at 50 and you are planning for 40 years or more. So here is the same question, run through this site's own engine. Balance $1,000,000, return 5%, inflation 2.5%: | Retirement length | Safe starting withdrawal | Share of balance | | --- | --- | --- | | 20 years | $63,412 a year | 6.34% | | 25 years | $53,545 a year | 5.35% | | 30 years | $47,054 a year | 4.71% | | 35 years | $42,488 a year | 4.25% | | 40 years | $39,123 a year | 3.91% | | 45 years | $36,556 a year | 3.66% | | 50 years | $34,547 a year | 3.45% | This site's engine, not Morningstar's. Constant 5% return, 2.5% inflation, no tax, balance exhausted at the end of the term. See [the methodology](https://savingslast.com/methodology/). ## The gap between those two numbers is the most useful thing on this page Read the 30-year row against Morningstar's 3.9%. Both describe a 30-year retirement. They differ by about 0.8 percentage points, which is roughly $8,054 a year on $1,000,000. That gap is sequence-of-returns risk, priced. This engine assumes the 5% turns up steadily, every year, in order. Morningstar's does not. It runs thousands of market paths and reports the rate that survived 90% of them. That includes the paths where the first three years were bad. A bad first decade does damage a good average never repairs, because you sold shares to live on while they were cheap. So use the table above for its shape, not its level. **The shape is real.** Every extra five years of retirement costs you something, and the cost shrinks as the horizon grows. The step from 20 to 25 years takes about a full percentage point. The step from 45 to 50 takes about a fifth of one. **The level is optimistic by design.** Any calculator that hands you a single return figure, this one included, is answering an easier question than the one your retirement will ask. ## Run your own number A published safe rate is calibrated to a hypothetical retiree. Yours has a specific balance, a specific tax rate and a specific horizon. The calculator below starts at roughly 3.9% on $1,000,000 — change the inputs and read the "to last 30 years" figure, which is your safe rate rather than the average one. *Interactive calculator on the page: https://savingslast.com/safe-withdrawal-rate-2026/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## How to use a number like this Treat 3.9% as a starting position, not an instruction. Three practical readings: - **If your plan needs more than about 5%**, no reasonable investment decision closes that gap. The lever is spending, working longer, or delaying Social Security — which raises your guaranteed income permanently and is often the highest-return move available. - **If your plan needs under 3%**, you are very probably underspending. The most common regret in retirement research is not running out of money; it is dying with most of it unspent. - **If you can be flexible**, you are closer to the 5.7% end than the 3.9% end. Decide in advance what you would cut in a bad year, and write it down while markets are calm. Figures cited are from Morningstar’s State of Retirement Income research for 2026, verified August 2026. This page is updated when that research is. ## Frequently asked questions **What is the safe withdrawal rate for 2026?** 3.9% of your starting balance, according to Morningstar’s 2026 research, for a 30-year retirement with 30–50% in equities and a 90% probability of success. That is up from 3.7% in 2025. **Why is it not 4% any more?** It was 4.0% in 2023 and 3.3% in 2021. The rate is recalculated each year against bond yields and equity valuations, so it moves with starting conditions. The original 4% figure came from U.S. historical data in 1994, not from today’s markets. **Can I withdraw more than 3.9%?** Yes, if you are willing to adjust. Morningstar found that strategies which cut spending after bad years supported starting rates up to 5.7%. Flexibility buys more retirement income than asset allocation does. **Does the safe withdrawal rate change with age?** It changes with horizon, which is closely related. A 30-year retirement supports 3.9%; 35 years supports 3.5%. Someone retiring at 75 with a 20-year horizon can safely take considerably more than someone retiring at 55. ## More guides - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Run the numbers - [How long will my money last](https://savingslast.com/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [All 117 calculators](https://savingslast.com/calculators/) --- # What a 401(k) Hardship Withdrawal Actually Leaves You > Withdraw $20,000 for a hardship and roughly # What a 401(k) Hardship Withdrawal Actually Leaves You3,600 lands, on the assumptions below. To end up with $20,000 you have to request about $29,400. Source: https://savingslast.com/401k-hardship-withdrawal-what-you-keep/ Updated: 2026-08-27 Author: Muhammad Ejaz Markdown: https://savingslast.com/401k-hardship-withdrawal-what-you-keep.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. By [Muhammad Ejaz](https://savingslast.com/about/) · *Finance content creator* · Updated 27 August 2026 You need $20,000 and the only money you have is in your 401(k). Request $20,000 as a hardship withdrawal and roughly **$13,600** is what you keep. To actually end up with $20,000 you have to request about **$29,400**. Almost nobody tells you that before you sign. ## The arithmetic, in full Two things come out of a hardship withdrawal. Ordinary income tax, and usually a 10% additional tax on top. Take a $20,000 hardship withdrawal at 44. Assume the 22% federal bracket. Assume a state with no income tax: - **10% additional tax.** 10% of $20,000 is **$2,000**. - **Federal income tax at 22%.** 22% of $20,000 is **$4,400**. - **Total tax.** $2,000 plus $4,400 is **$6,400**. - **What you keep.** $20,000 minus $6,400 is **$13,600**. That is 68 cents on the dollar. Every input is above, so you can run it at your own bracket. ## To end up with $20,000, request $29,400 This is the part that costs people money, and it is simple arithmetic. If tax takes 32 cents of every dollar, you keep 68 cents. So divide what you need by 0.68. $20,000 divided by 0.68 is **$29,412**. Check it: 32% of $29,412 is $9,412, and $29,412 minus $9,412 is $20,000. Request $20,000 to cover a $20,000 bill and you are $6,400 short, with no way to go back for more. The plan will not let you take a second hardship withdrawal because the first one was too small. ## Where your bracket changes the answer The withdrawal is added to your other income for the year. It is not taxed on its own. So the rate that matters is the one that applies to the last dollars you earn, and a large withdrawal can push part of itself into the next bracket. State income tax comes on top in most states. The 22% used above is an assumption, not your rate. Run your own. ## What is withheld is not what you owe The plan withholds something when it sends the money. That figure is a deposit against your tax bill, not the bill. If too little is withheld you owe the rest in April. If too much is withheld you get it back, having gone without it in the meantime, which is the opposite of the point when you needed the money now. Ask the plan what it will withhold before you sign. Then compare that with the arithmetic above. ## The 10% is not automatic The IRS writes that hardship distributions are subject to income taxes (unless they consist of Roth contributions). They may also be subject to a 10% additional tax on early distributions. **May.** The 10% has a list of exceptions, and some reach the exact situations that drive people to a hardship withdrawal. Unreimbursed medical expenses are one. If an exception applies to you, the $2,000 above shrinks or disappears, and the tax does not. Check the exceptions before you assume the full 32%. That check is worth more per hour than anything else on this page. ## You cannot put it back The IRS is flat about this. Employees who take a hardship distribution can't: repay it to the plan, or roll it over to another plan or an IRA. A 401(k) loan is repaid. A hardship withdrawal is gone. That single difference is why the loan is usually the better instrument, and it is the first thing to rule out. ## Look at a loan first Most plans that allow hardship withdrawals also allow loans. A loan is not taxed, carries no 10%, and the interest is paid back to your own account. It has a real risk worth naming. Leave the job with a loan outstanding and the balance generally becomes due. What is not repaid is treated as a distribution, with the tax and the 10% arriving then. Even so, start there. Ask the plan whether it offers a loan before you ask about hardship. Two other routes exist if you are older than this page assumes. Leaving your employer in or after the year you turn 55 opens the [rule of 55](https://savingslast.com/rule-of-55-calculator/). A fixed schedule under [section 72(t)](https://savingslast.com/72t-distribution-calculator/) reaches money in an IRA at any age. Both avoid the 10%, and both are still taxable as ordinary income. ## The two conditions the plan applies The IRS allows a hardship distribution only where it is both Due to an immediate and heavy financial need and Limited to the amount necessary to satisfy that financial need. Read the second one against the gross-up above, because they collide. The amount necessary includes the tax you will owe on the withdrawal. So the number you request is not your bill. It is your bill plus the tax on getting it. Your plan administrator decides, not the IRS. Plans are not required to offer hardship withdrawals at all, and the ones that do set their own documentation rules. ## When this is the wrong move Skip it if the bill is not yet due and you have any other route. The money leaves the account permanently and stops compounding. Skip it if you could take a loan instead and expect to stay in the job. Skip it if the shortfall is larger than the account. Losing 32% of a balance that still does not clear the debt is the worst outcome available. ## What this page does not settle It does not tell you whether your plan will approve it, because plans differ and yours decides. It does not compute your marginal rate, your state tax, or whether an exception to the 10% reaches your situation. Those need your return, not a web page. I am not a financial advisor, and nothing here is advice about your situation, because I do not know your situation. What this page gives you is the arithmetic and the two IRS conditions, so you can walk into the conversation with the plan already knowing what the money costs. ## Before you file the request Write down three numbers and take them with you. What you actually need. Your federal marginal rate plus your state rate. And the two divided, which is what to request. Then ask the plan two questions. Do you offer a loan instead, and what will you withhold from a hardship distribution. Tax rules stated as of August 2026. The worked example assumes a 22% federal marginal rate, no state income tax, and that the 10% additional tax applies. All three are assumptions, and all three are yours to check. *Interactive calculator on the page: https://savingslast.com/401k-hardship-withdrawal-what-you-keep/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## More guides - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Run the numbers - [How long will my money last](https://savingslast.com/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [All 117 calculators](https://savingslast.com/calculators/) --- # What Is the 4% Rule for Retirement? > The 4% rule explained: where it came from, what it actually promises, the four assumptions that break it, and what researchers say the safe rate is now. Source: https://savingslast.com/what-is-the-4-percent-rule/ Updated: 2026-08-24 Author: Muhammad Ejaz Markdown: https://savingslast.com/what-is-the-4-percent-rule.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. By [Muhammad Ejaz](https://savingslast.com/about/) · *Finance content creator* · Updated 24 August 2026 Withdraw 4% of your savings in year one, then raise that dollar amount with inflation each year after. In the historical data it never ran out over 30 years. That is the whole rule — and every word of it matters. ## The short answer On a $1,000,000 portfolio the 4% rule says you take **$40,000** in the first year — $3,333 a month. In year two you do not take 4% again. You take last year's $40,000 plus inflation, so at 2.5% inflation you take $41,000, regardless of what the portfolio did. The percentage is applied once, at the start. Everything after that is an inflation adjustment. That distinction is the single most misunderstood thing about the rule, and it is what makes it a *spending plan* rather than a formula you re-run each year. Your income under each rule, on $1,000,000 and the same market The 4% rule sets your income once and raises it with inflation, so it never reacts to the market. Taking 4% of the current balance each year cannot run out, but your income moves with the portfolio — including the years you would least want it to. ## Where the number came from In 1994, a financial planner named William Bengen published *Determining Withdrawal Rates Using Historical Data* in the Journal of Financial Planning. He took every 30-year retirement window in the U.S. record — someone retiring in 1926, 1927, 1928 and so on — and asked which starting withdrawal rate would have survived the worst of them with a portfolio of roughly half stocks and half bonds. The answer was a little over 4%. Bengen called that worst-case number SAFEMAX. It is not the rate that usually works; it is the rate that worked even for the unluckiest retiree in the sample, someone who stopped working straight into the 1929 crash or the 1966–1982 stagnation. The 1998 Trinity Study, by three Trinity University professors, tested a similar range of portfolios and reported success rates that broadly agreed. So the 4% rule is a floor derived from a bad case, not an average. That is precisely why it feels too cautious most of the time — it is designed to be. ## What the rule actually promises - **Thirty years, not forever.** The study horizon was 30 years. Retire at 65 and that takes you to 95, which is a reasonable plan. Retire at 55 and the rule was never tested on your situation. - **Your starting balance, not today's.** The 4% is computed once. Later withdrawals ignore the portfolio's value entirely. - **Before tax.** Withdrawals from a traditional 401(k) or IRA are ordinary income. A $40,000 withdrawal at a 20% blended rate is $32,000 to spend. - **Before fees.** Bengen's data had no fund expenses or advisory fee subtracted. A 1% annual fee comes directly out of the safe rate. - **U.S. returns.** The record it draws on is the best-performing large market of the twentieth century. ## The four things that break it **A longer retirement.** The safe rate is a function of horizon. Morningstar's 2026 research puts the 30-year figure at 3.9% and the 35-year figure at 3.5% — that is a 10% pay cut for five more years of life. Early retirees planning 40 or more years should be thinking closer to 3%. **A different portfolio.** The rule assumed a substantial equity allocation. Hold mostly bonds or cash and you lose the growth the rule depends on; hold 100% stocks and you gain volatility without much extra safe spending, because the worst case gets worse. **Bad luck early.** A poor decade at the start does far more damage than the same decade at the end, because you are selling into it. This is called sequence-of-returns risk, and it is the mechanism the 4% rule was built to survive. It is also the reason two retirees with identical average returns can land in completely different places. **Fees.** A 1% advisory fee plus 0.5% in fund costs is 1.5% a year off the top, and it comes out of the same return the safe rate is calculated from. ## What the safe rate is now Nobody serious treats 4% as fixed. Morningstar recalculates it annually against current bond yields and equity valuations; their 2026 base case is **3.9%** for a 30-year retirement, a 30–50% equity allocation and a 90% probability of success. It has moved between 3.3% and 4.0% over the past six years, entirely because the starting conditions moved. Bengen himself has revised upward over the years — adding asset classes such as small-cap and international to the mix pushed his own figure above 4.5% in later work. Two credible researchers landing on different numbers is not a contradiction. It is a reminder that the answer depends on assumptions you get to choose, which is the argument for running your own numbers rather than adopting anyone's rule of thumb. ## Try it against your own balance The calculator below starts at the 4% rule on $1,000,000. Change the balance to yours and watch the "to last 30 years" figure — that number is the 4% rule recomputed for your actual return, inflation and tax assumptions, which is more useful than the rule itself. *Interactive calculator on the page: https://savingslast.com/what-is-the-4-percent-rule/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## When 4% is the wrong number for you **Too conservative** if you have a pension or claim Social Security late, so guaranteed income covers your essentials and savings only fund discretionary spending. Also if you are willing to cut spending in a bad year — Morningstar found that flexible strategies, which adjust withdrawals to market conditions, supported starting rates as high as **5.7%**. Flexibility buys more than allocation ever will. **Too aggressive** if you retired before 60, if you pay 1%+ in fees, if your portfolio is mostly bonds, or if you may face significant long-term-care costs. Morningstar's figure drops to 3.5% once long-term care is modelled for someone retiring at 67. The honest use of the 4% rule is as a sanity check: a fast way to know whether you are in the right postcode. If your plan needs 7%, no amount of asset allocation will rescue it, and you have learned something important in ten seconds. If it needs 3%, you can probably afford more life than you are allowing yourself. ## Frequently asked questions **Is the 4% rule still valid in 2026?** As a rough benchmark, yes. As a precise number, no — and it never was. Morningstar’s 2026 research puts the safe starting rate at 3.9% for a 30-year retirement with 30–50% in equities and a 90% success target. The rule remains a useful sanity check; it is not a guarantee. **Do I recalculate 4% every year?** No. That is a different strategy called fixed-percentage withdrawal. Under the 4% rule you take 4% once, in year one, and then raise that dollar amount by inflation each year. Recalculating annually means your income falls after a bad year but the money never fully runs out. **Is the 4% before or after tax?** Before. Withdrawals from a traditional 401(k) or IRA are taxable income, so $40,000 withdrawn at a 20% blended rate leaves about $32,000 to spend. Roth withdrawals are generally tax-free, which is why the same balance supports more spending in a Roth. **What is the 4% rule on $500,000?** $20,000 in the first year, or about $1,667 a month before tax, rising with inflation after that. Combined with an average Social Security benefit, a single retiree lands near $3,600 a month. **Does the 4% rule mean my money lasts forever?** No. It was tested over 30 years. It often leaves a large balance behind, because it is calibrated to the worst historical case rather than the typical one — but surviving 30 years is all it was ever designed to promise. ## More guides - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Run the numbers - [How long will my money last](https://savingslast.com/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [All 117 calculators](https://savingslast.com/calculators/) --- # How Long Will My Money Last With Social Security? > Social Security covers part of your spending, so your savings only need to cover the rest. Calculate how long the gap lasts, with the average benefit built in. Source: https://savingslast.com/how-long-will-my-money-last-with-social-security/ Markdown: https://savingslast.com/how-long-will-my-money-last-with-social-security.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Social Security changes this question completely. The typical retired worker receives about $1,976 a month, which means savings only have to cover what is left over — and that gap is usually far smaller than people assume. *Interactive calculator on the page: https://savingslast.com/how-long-will-my-money-last-with-social-security/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Enter the gap, not your spending This is the mistake that makes people think they cannot afford to retire. If you spend $4,500 a month and Social Security pays $1,976, your savings need to produce about **$2,524** — not $4,500. On a $500,000 balance those two inputs give wildly different answers. | Monthly spending | Social Security | Savings must cover | How long $500,000 lasts | | --- | --- | --- | --- | | $3,000 | $1,976 | **$1,024** | ∞ | | $3,500 | $1,976 | **$1,524** | 44.9 years | | $4,000 | $1,976 | **$2,024** | 28.6 years | | $4,500 | $1,976 | **$2,524** | 21.2 years | | $5,000 | $1,976 | **$3,024** | 16.8 years | | $6,000 | $1,976 | **$4,024** | 12.0 years | 5% return, 2.5% inflation, no tax. Enter your own balance above. ## Why the gap shrinks the risk so much Social Security is inflation-adjusted and lasts as long as you do. That makes it the sturdiest part of a retirement plan, and it means the portion of your spending it covers carries no longevity risk at all. A retiree whose guaranteed income covers most of their essential costs can survive a bad market by trimming discretionary spending; a retiree funding everything from a portfolio cannot. ## The two-stage problem if you retire before claiming Most people do not retire and claim on the same day. If you stop working at 62 and claim at 67, savings carry the full load for five years and then only the gap after that. The calculator on this page models a constant withdrawal, so run it twice: 1. **Stage one** — full spending from savings, for the years before Social Security starts. 2. **Stage two** — take the balance the calculator shows at the end of stage one, then re-run it with the smaller gap. The [bridge calculator](https://savingslast.com/social-security-bridge-calculator/) walks through this properly, including why the front-loaded spending is usually worth it. ## Getting your own benefit number Do not use the average. Create an account at ssa.gov and read your statement — it shows your estimated benefit at 62, at full retirement age and at 70, based on your actual earnings record. The spread between those three numbers is typically larger than any investment decision you will make in retirement. ## Taxes on the combination Once savings withdrawals and Social Security are added together, up to 85% of the benefit can become taxable income. That is why the tax field on this calculator matters more for retirees with Social Security than for those without. See [how Social Security is taxed](https://savingslast.com/is-social-security-taxable/) for the thresholds. ## Frequently asked questions **Should I include Social Security in a retirement calculator?** Enter it in the Social Security field under the calculator inputs, with the age it starts, and enter your full monthly spending as the withdrawal. From that age on, the calculator takes Social Security off each month's spending and draws only the rest from savings. Never add it to your assets. **What is the average Social Security benefit?** About $1,976 a month for a retired worker, with a maximum near $4,018 for someone claiming at full retirement age after a full career at the taxable maximum. Your own figure is on your ssa.gov statement. **Does Social Security keep up with inflation?** It is adjusted annually by the cost-of-living adjustment, which is based on a consumer price index. It is the only major retirement income source that adjusts automatically, which is why it is worth treating as the foundation rather than a supplement. **How long will $500,000 last with Social Security?** If you spend $4,000 a month and Social Security covers $1,976, savings need to produce $2,024 a month — and $500,000 lasts about 28.6 years at 5% returns. Without Social Security, covering the full $4,000 would exhaust it in about 12.1 years. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) 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. --- # How Much Do I Need to Retire? > Work out the savings balance you need once Social Security is counted. Tables by monthly spending, for a single retiree and for a couple with two benefits. Source: https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/ Markdown: https://savingslast.com/how-much-do-i-need-to-retire-with-social-security.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The honest answer is not a single number — it is your spending minus your guaranteed income, multiplied by enough to last thirty years. Social Security does most of the heavy lifting for ordinary spending levels, which is why the required balance is usually smaller than the headlines suggest. *Interactive calculator on the page: https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The balance you actually need Each row takes a monthly spending level, subtracts Social Security, and shows the savings balance required to fund the remainder for 30 years at 5% returns and 2.5% inflation. The last column is the same calculation for a couple with two average benefits. | Monthly spending | Gap after one benefit | Balance needed (single) | Gap after two benefits | Balance needed (couple) | | --- | --- | --- | --- | --- | | $3,000 | $1,024 | **$261,000** | $0 | **None needed** | | $3,500 | $1,524 | **$389,000** | $0 | **None needed** | | $4,000 | $2,024 | **$516,000** | $48 | **$12,000** | | $4,500 | $2,524 | **$644,000** | $548 | **$140,000** | | $5,000 | $3,024 | **$771,000** | $1,048 | **$267,000** | | $6,000 | $4,024 | **$1,026,000** | $2,048 | **$522,000** | | $7,500 | $5,524 | **$1,409,000** | $3,548 | **$905,000** | A 30-year horizon at 5% return and 2.5% inflation, before tax. Add roughly 15–25% if the money is in a traditional 401(k) or IRA and will be taxed on the way out. ## Why "25 times your spending" overstates it The familiar rule — save 25 times your annual spending — is built on the 4% withdrawal rate and is correct as far as it goes. The trap is applying it to *total* spending. A couple spending $60,000 a year does not need $1.5 million; they need 25 times the part Social Security does not cover, which on two average benefits is closer to $400,000. ## What changes the number most - **Housing.** A paid-off home versus a mortgage or rent is often a $1,500-a-month swing — larger than any investment decision. - **Retirement age.** Retiring at 55 needs a 40-year horizon and a safe withdrawal rate nearer 3%, which raises the required balance by roughly a third against retiring at 65. - **Healthcare before 65.** Private cover can run $1,000+ a month per person until Medicare starts. See [retiring at 60](https://savingslast.com/can-i-retire-at-60/). - **Tax wrapper.** $1 million in a Roth is worth meaningfully more than $1 million in a traditional IRA. The table above is pre-tax. - **When you claim.** Delaying to 70 raises the benefit 77% over claiming at 62, which cuts the gap the portfolio has to fill for the rest of your life. ## Test it rather than trusting it Rules of thumb are built on averages you do not have. Put your own balance and your own gap into the calculator above; the "to last 30 years" figure is the same calculation as the table, run on your numbers instead of a national one. ## Frequently asked questions **How much money do I need to retire?** It depends on the gap between your spending and your guaranteed income, not on your spending alone. A single retiree spending $4,000 a month with an average Social Security benefit needs savings to cover about $2,024 a month, which calls for a balance of roughly $516,000 for a 30-year retirement. The table above gives the figure for other spending levels. **Is $1 million enough to retire?** For most people, comfortably. A 4% withdrawal produces about $3,333 a month, and with an average Social Security benefit a single retiree is above $5,300 a month before tax. Whether it is enough depends on housing costs and healthcare more than on the balance. **What is the 25x rule?** Save 25 times your annual spending, which is the inverse of the 4% withdrawal rate. It is a reasonable starting point but should be applied to spending net of Social Security and any pension, not to total spending. **Do I need less if I retire later?** Yes, three times over: fewer years to fund, more years of contributions and growth, and a larger Social Security benefit. Each year of delay between 62 and 70 raises the benefit by roughly 7–8% permanently. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) ## Related calculators - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) 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. --- # Is Social Security Taxable? > Up to 85% of Social Security is taxable once other income crosses the provisional-income thresholds. The limits, a worked example, and how to reduce it. Source: https://savingslast.com/is-social-security-taxable/ Markdown: https://savingslast.com/is-social-security-taxable.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Sometimes — and it is your *other* income that decides, not the benefit itself. The thresholds have not been adjusted for inflation since 1984, which is why a rule originally aimed at wealthy retirees now reaches ordinary ones. *Interactive calculator on the page: https://savingslast.com/is-social-security-taxable/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Provisional income is the number that matters The IRS does not look at your benefit in isolation. It calculates **provisional income**: your adjusted gross income excluding Social Security, plus any tax-exempt interest, plus half of your Social Security benefit. That total is compared against fixed thresholds. | Filing status | Provisional income | Share of benefit that is taxable | | --- | --- | --- | | Single | Under $25,000 | None | | $25,000 – $34,000 | Up to 50% | | | Over $34,000 | Up to 85% | | | Married filing jointly | Under $32,000 | None | | $32,000 – $44,000 | Up to 50% | | | Over $44,000 | Up to 85% | | Two things surprise people. First, "up to 85% taxable" means 85% of the benefit is included in taxable income — not that you pay 85% tax on it. Second, the thresholds are not indexed to inflation, so each year of cost-of-living increases pulls more retirees over the line permanently. ## A worked example A single retiree takes $2,500 a month from an IRA ($30,000 a year) and receives $1,976 a month in Social Security ($23,712 a year). - Provisional income = $30,000 + half of $23,712 = **$41,856** - That is above $34,000, so up to 85% of the benefit is taxable - Taxable Social Security is therefore up to $20,155 of the $23,712 received Had the same retiree withdrawn $1,200 a month instead, provisional income would be $26,256 — into the 50% band rather than the 85% one. The withdrawal decision, not the benefit, moved the tax. ## The tax torpedo Because each extra dollar of withdrawal can also make another 85 cents of Social Security taxable, retirees in the phase-in range can face a marginal rate far above their nominal bracket — a 22% bracket can behave like 40% for a stretch. This "tax torpedo" is one of the strongest arguments for Roth conversions in the low-income years before claiming, and for drawing traditional money down early rather than late. ## The temporary senior deduction For tax years 2025 through 2028 there is an additional deduction of $6,000 per person aged 65 or over, phasing out above $75,000 of modified AGI for single filers and $150,000 for joint filers. It does not change how Social Security is taxed — the provisional-income formula is untouched — but it reduces the tax owed on the result for many middle-income retirees, and it expires after 2028 unless extended. ## State tax is a separate question Most states do not tax Social Security at all. A small number still do, generally with income thresholds that exempt most retirees. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/) and the full [state retirement tax comparison](https://savingslast.com/retirement-taxes-by-state/). ## How to reduce the tax - **Convert to Roth before claiming.** Roth withdrawals do not count toward provisional income, so a retiree living on Roth money can keep their benefit entirely untaxed. - **Bunch withdrawals.** Taking two years of spending in one tax year and none the next can keep the quiet year below a threshold. - **Watch tax-exempt bond interest.** Municipal bond interest is federally tax-free but still counts in provisional income, so it can push the benefit into tax without producing taxable income itself. - **Use qualified charitable distributions.** From age 70½ a donation made directly from an IRA satisfies required distributions without adding to AGI. ## Frequently asked questions **At what income is Social Security taxed?** Provisional income above $25,000 for a single filer or $32,000 for a couple makes up to 50% of the benefit taxable; above $34,000 and $44,000 respectively, up to 85% is taxable. Provisional income is AGI excluding Social Security, plus tax-exempt interest, plus half the benefit. **Does 85% taxable mean I pay 85% tax?** No. It means up to 85% of the benefit is added to your taxable income and then taxed at your ordinary rate. Someone in the 12% bracket with 85% of a $24,000 benefit taxable owes roughly $2,450, not $20,400. **Do Roth withdrawals make Social Security taxable?** No. Qualified Roth distributions are excluded from provisional income entirely, which is why converting traditional money to Roth before claiming can keep a benefit tax-free for the whole of retirement. **Do the thresholds rise with inflation?** No. The $25,000/$32,000 and $34,000/$44,000 limits were set in 1984 and 1993 and have never been indexed. Each annual cost-of-living increase therefore pushes more retirees over them, which is why a far larger share of beneficiaries pay tax now than when the rule was written. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) - [Lump sum vs annuity](https://savingslast.com/pension-lump-sum-vs-annuity-calculator/) 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. --- # Retirement Income Calculator With Social Security > Add Social Security, pension and portfolio withdrawals into one monthly retirement income figure, and see how long the portfolio side of it lasts. Source: https://savingslast.com/retirement-income-calculator-with-social-security/ Markdown: https://savingslast.com/retirement-income-calculator-with-social-security.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Retirement income comes from three places: Social Security, any pension or annuity, and withdrawals from savings. Only the third one can run out — so the job is to work out how much it has to carry, and for how long. *Interactive calculator on the page: https://savingslast.com/retirement-income-calculator-with-social-security/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## Build the income stack Write down the three lines. Enter Social Security and the pension in the income fields, and your full spending as the withdrawal. The calculator subtracts them month by month and draws only the remainder from savings. | Source | Lasts as long as you do? | Inflation-adjusted? | | --- | --- | --- | | Social Security | Yes | Yes, annually | | Pension or annuity | Usually yes | Rarely — most private pensions are fixed | | Portfolio withdrawals | **Only if managed** | Only if you increase them | ## What a portfolio adds to Social Security Taking a 4% withdrawal and adding the average retired-worker benefit gives the pre-tax monthly income below. It is the single most useful table on this site for answering "is that enough?", because it converts a balance into the thing you actually live on. | Portfolio | 4% withdrawal | Plus Social Security | Couple, two average benefits | | --- | --- | --- | --- | | $250,000 | $833/mo | **$2,809/mo** | $4,785/mo | | $500,000 | $1,667/mo | **$3,643/mo** | $5,619/mo | | $750,000 | $2,500/mo | **$4,476/mo** | $6,452/mo | | $1,000,000 | $3,333/mo | **$5,309/mo** | $7,285/mo | | $1,500,000 | $5,000/mo | **$6,976/mo** | $8,952/mo | | $2,000,000 | $6,667/mo | **$8,643/mo** | $10,619/mo | Before tax. A couple with two average benefits and a $750,000 portfolio clears $6,452 a month, which is above the median US household income. ## The sequencing decision Which account you draw from first changes how long the portfolio lasts, sometimes by years. The textbook order is taxable brokerage first, then traditional 401(k) and IRA, then Roth last — it keeps tax-deferred money compounding and leaves the tax-free account for the end. The important refinement is to fill up the lower tax brackets with traditional withdrawals or Roth conversions in the years before Social Security and required minimum distributions start, rather than leaving those brackets unused and being forced into higher ones at 73. ## Pensions are not inflation-adjusted A $2,000 monthly pension with no cost-of-living adjustment is worth about $1,220 in today's money after 20 years at 2.5% inflation. If most of your guaranteed income is a fixed pension, the portfolio has to grow its contribution over time to compensate — which means starting at a lower withdrawal rate than someone whose guaranteed income is mostly Social Security. ## Required minimum distributions From age 73 the IRS requires a minimum withdrawal from traditional accounts each year whether you need the money or not, starting at roughly 3.8% of the balance and rising with age. For retirees who have been living on less, this can push taxable income — and Medicare premiums — higher than planned. See the [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/). ## Frequently asked questions **How much monthly income will $1 million give me?** About $3,333 a month at a 4% withdrawal rate, before tax. Add an average Social Security benefit and a single retiree is near $5,309 a month; a couple with two benefits is near $7,285. **What is a good retirement income?** A common benchmark is 70–80% of pre-retirement income, on the basis that commuting, payroll taxes and retirement saving all stop. It is only a starting point — housing status and healthcare costs move the real figure far more than the rule does. **Should I count my pension as part of my portfolio?** No. Enter it in the pension field so the calculator models only what savings must cover. Leave the inflation box unticked if the pension has no cost-of-living adjustment; the calculator then holds it flat while spending rises, which is the real erosion. **When do required minimum distributions start?** Age 73 for people reaching 72 after 2022, rising to 75 for those born in 1960 or later. They apply to traditional 401(k) and IRA balances, not to Roth IRAs, and the first year can be deferred to 1 April of the following year — which doubles up two distributions into one tax year. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) 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. --- # Social Security Break-Even Calculator > Find the age at which waiting to claim Social Security overtakes claiming early. Compares 62, full retirement age and 70, with COLA and investment returns. Source: https://savingslast.com/social-security-break-even-calculator/ Markdown: https://savingslast.com/social-security-break-even-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Claiming at 62 pays you less every month but pays you sooner. This finds the age at which the bigger cheque overtakes the head start — on your own benefit amount, with inflation adjustments and, if you want, the return you would earn by investing the early payments. *Interactive calculator on the page: https://savingslast.com/social-security-break-even-calculator/. The same engine is the MCP tool social_security_claiming at https://savingslast.com/mcp.* ## What the break-even age actually means Social Security is designed to be roughly actuarially fair: claim early and you get a smaller payment for more months; claim late and you get a larger payment for fewer. The break-even age is the point where the two cumulative totals cross. Before it, the early claimer is ahead. After it, the person who waited is ahead — and stays ahead, permanently and by a widening margin. On a typical benefit with no investment assumption, waiting from 62 to 70 breaks even at around **age 81**, and waiting from 62 to full retirement age breaks even at around **age 79**. Assume you invest every early payment at 5% a year and those move out to roughly **age 89** and **age 88**. ## Why the break-even age is the wrong question for most people Break-even analysis quietly assumes the goal is to collect the most dollars. For most retirees the real goal is different: not running out of money if you live a long time. Social Security is the only inflation-adjusted income you cannot outlive, so delaying it is best understood as buying longevity insurance, not as an investment with a payback period. That reframing changes the answer. If you die at 75, claiming at 62 wins — but you are not there to care. If you live to 95, delaying wins by six figures, and that is precisely the scenario in which running short of money would have hurt. ## What the benefit is at each age | Claiming age | Share of your full benefit | On a $2,000 full benefit | | --- | --- | --- | | 62 | 70% | $1,400/mo | | 63 | 75% | $1,500/mo | | 64 | 80% | $1,600/mo | | 65 | 86.7% | $1,733/mo | | 66 | 93.3% | $1,867/mo | | **67 (full retirement age)** | **100%** | **$2,000/mo** | | 68 | 108% | $2,160/mo | | 69 | 116% | $2,320/mo | | 70 | 124% | $2,480/mo | Full retirement age is 67 for anyone born in 1960 or later. If you were born earlier it is 66 and some months, and every percentage above shifts accordingly. ## When claiming early is genuinely right - **Poor health or a shortened life expectancy.** The break-even maths simply does not get reached. - **You need the money now.** Claiming at 62 to avoid selling investments in a down market, or to avoid debt, is a real and rational reason. - **You are the lower earner in a couple.** The standard strategy is for the lower earner to claim early and the higher earner to delay to 70, because the higher benefit becomes the survivor benefit for whichever spouse lives longer. - **You have no other savings and no way to bridge.** Delaying only works if something funds the gap. ## When delaying is worth it - **You are the higher earner in a couple.** Delaying raises both your benefit and the survivor benefit — it pays off across two lifetimes, not one. - **You are in good health with family longevity.** The odds of reaching the break-even age are what matter, not the average. - **You have savings to bridge the gap.** Spending $X of portfolio to buy a permanently higher, inflation-linked, government-backed income is usually a better trade than the portfolio itself offers. See the [bridge calculator](https://savingslast.com/social-security-bridge-calculator/). - **You want lower taxes later.** The years between retiring and claiming are usually your lowest-income years, which makes them the best window for Roth conversions. ## The 8% figure, precisely Delayed retirement credits are two-thirds of 1% per month — 8% a year — from full retirement age to 70, and they stop dead at 70. There is never a reason to delay past your 70th birthday. Going the other way, the reduction is five-ninths of 1% per month for the first 36 months before full retirement age, then five-twelfths of 1% for each month beyond that, which is why claiming at 62 with a full retirement age of 67 costs exactly 30%. ## Frequently asked questions **What is the break-even age for Social Security?** Comparing age 62 with age 70 and ignoring investment returns, the crossover usually falls around age 80–81. Add an assumption that you invest the early payments and it moves into the mid-to-late 80s. Enter your own benefit above for the exact age on your numbers. **Is it better to take Social Security at 62 or 67?** Claiming at 62 pays 70% of your full benefit; waiting to 67 pays 100%. The cumulative crossover is usually around age 78–79. If you expect to live beyond that, are the higher earner in a couple, or have savings to bridge the gap, waiting is generally better. **Does waiting to 70 really increase my benefit by 24%?** Yes, if your full retirement age is 67. Delayed retirement credits add 8% a year from full retirement age to 70, so three years of delay adds 24% — permanently, and before annual cost-of-living increases compound on top of the larger amount. **Should both spouses delay Social Security?** Usually not. The common approach is for the lower earner to claim earlier for cash flow and the higher earner to delay to 70, because the larger of the two benefits continues as the survivor benefit after the first death. Delaying the higher benefit protects both lifetimes. **Does the break-even calculation account for inflation?** Yes. Benefits are increased by the cost-of-living adjustment you enter each year, and because COLAs are a percentage, they compound on a larger base for someone who delayed — which is one reason delaying wins by more than the headline 24%. ## More on Social Security - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [Lump sum vs annuity](https://savingslast.com/pension-lump-sum-vs-annuity-calculator/) - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) 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. --- # Social Security Bridge Calculator > Spend savings between retiring and claiming Social Security to buy a permanently larger benefit. Calculate what the bridge costs and what it buys. Source: https://savingslast.com/social-security-bridge-calculator/ Markdown: https://savingslast.com/social-security-bridge-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The bridge strategy: retire now, live on savings, and delay Social Security to 70 so the benefit is permanently 77% larger than claiming at 62. This works out what the bridge costs and whether your portfolio can carry it. *Interactive calculator on the page: https://savingslast.com/social-security-bridge-calculator/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## The trade in one line You spend a defined, known amount of savings over a defined, known number of years. In exchange you get an inflation-linked income that is larger for life and cannot run out. On a $2,000 full benefit, claiming at 62 pays $1,400 a month and claiming at 70 pays $2,480 — the same person, $1,080 a month apart, forever. ## What the bridge costs Bridging from 62 to 70 means funding eight years of the benefit you are not taking. At the age-70 amount that is roughly the figure below — and that is the honest price of the strategy. | Your full benefit (at 67) | Claim at 62 | Claim at 70 | Monthly gain | Approximate 8-year bridge cost | | --- | --- | --- | --- | --- | | $1,500 | $1,050 | $1,860 | **$810** | $178,560 | | $2,000 | $1,400 | $2,480 | **$1,080** | $238,080 | | $2,500 | $1,750 | $3,100 | **$1,350** | $297,600 | | $3,000 | $2,100 | $3,720 | **$1,620** | $357,120 | | $3,500 | $2,450 | $4,340 | **$1,890** | $416,640 | Bridge cost is the age-70 benefit funded from savings for eight years, ignoring growth on the money — a deliberately conservative way to look at it. ## Why it is usually a good trade Think of the bridge as buying an annuity. Spending $238,080 of savings to buy $1,080 a month of extra inflation-linked income for life is a payout rate no commercial annuity comes close to matching — and it comes with a government guarantee, an automatic cost-of-living adjustment, and no insurance company credit risk. For the higher earner in a couple it is better still, because the larger benefit also becomes the survivor benefit. ## When the bridge does not work - **The portfolio is too small.** If eight years of full spending would take the balance below roughly ten years of remaining expenses, the bridge is buying insurance you cannot afford. Run it above and look at what is left. - **Health is poor.** The trade only pays if you live past the break-even age. See the [break-even calculator](https://savingslast.com/social-security-break-even-calculator/). - **A bad market arrives at the same time.** Front-loading withdrawals is exactly the sequence-of-returns risk retirees are warned about. The standard defence is to hold the bridge years in cash or short-term bonds rather than in equities, so the withdrawal is not forced from a fallen market. ## The tax bonus nobody mentions The bridge years are usually the lowest-income years of your life: no salary, no Social Security, no required minimum distributions. That is the ideal window for Roth conversions — moving traditional 401(k) money to Roth at a low bracket, which shrinks the required distributions waiting at 73 and reduces how much of your Social Security becomes taxable later. Many retirees find the tax saving alone justifies the bridge. ## Running it here Set the balance to your portfolio, the withdrawal to your full monthly spending, and the age to the year you retire. The result shows how the balance holds up carrying the whole load. Then note the balance remaining at the point Social Security starts and re-run with the smaller gap — that second run is the one that tells you whether the plan survives. ## Frequently asked questions **What is a Social Security bridge strategy?** Retiring before claiming Social Security and living on savings in the meantime, so the benefit can grow by 8% a year in delayed retirement credits. The savings spent are the "bridge" between the retirement date and the claiming date. **How much does it cost to delay Social Security to 70?** Roughly the age-70 benefit multiplied by the number of months you delay. Delaying eight years on a $2,480 age-70 benefit costs about $238,000 of savings, and buys about $1,080 a month more, inflation-adjusted, for life. **Is delaying Social Security better than buying an annuity?** For most retirees, yes. The implied payout rate on delayed Social Security is higher than commercial inflation-adjusted annuities, it carries a government guarantee rather than an insurer’s, and it automatically raises the survivor benefit for a spouse. **Where should the bridge money be invested?** Money you will spend within the next two to three years generally belongs in cash, short-term Treasuries or CDs rather than equities. Front-loading withdrawals into a falling market is the main way this strategy goes wrong, and holding the near-term spending in cash removes that risk. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) 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. --- # When Should You Take Social Security? > How to decide when to claim Social Security: what each age pays, the break-even maths, the survivor-benefit rule for couples, and when claiming early is right. Source: https://savingslast.com/when-to-take-social-security/ Markdown: https://savingslast.com/when-to-take-social-security.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. There is no universally right answer, but there is a right way to decide. Four things settle it: your health, whether you are married, whether you are still working, and whether you have savings to live on in the meantime. *Interactive calculator on the page: https://savingslast.com/when-to-take-social-security/. The same engine is the MCP tool social_security_claiming at https://savingslast.com/mcp.* ## The four questions that decide it ### 1. Are you married — and are you the higher earner? This is the single most overlooked factor. When one spouse dies, the survivor keeps the larger of the two benefits and loses the smaller one. Delaying the *higher* earner's benefit therefore raises the income of whichever spouse lives longest, often for decades. The standard playbook: lower earner claims early for cash flow, higher earner delays to 70. ### 2. Are you still working? If you claim before full retirement age and keep working, the earnings test withholds $1 of benefit for every $2 you earn above an annual limit (around $23,400 in 2025). The money is not lost — your benefit is recalculated upward at full retirement age — but claiming early while earning a full salary is usually pointless. After full retirement age there is no earnings test at all. ### 3. How is your health, and how long did your parents live? Break-even ages cluster in the late 70s and early 80s. A 65-year-old today has roughly a 50% chance of reaching 87, and for a couple the odds that at least one reaches 95 are meaningful. Average life expectancy is the wrong benchmark — you are insuring against the long tail, not the average. ### 4. Can you afford to wait? Delaying only works if something funds the gap. Usually that is portfolio withdrawals. Spending $238,080 of savings between 62 and 70 to buy a permanently 77% larger inflation-linked income is, for most healthy retirees, the best-value annuity available anywhere — but only if the portfolio can take the hit. Test it on the [bridge calculator](https://savingslast.com/social-security-bridge-calculator/). ## What each age pays | Claiming age | Share of your full benefit | On a $2,000 full benefit | | --- | --- | --- | | 62 | 70% | $1,400/mo | | 63 | 75% | $1,500/mo | | 64 | 80% | $1,600/mo | | 65 | 86.7% | $1,733/mo | | 66 | 93.3% | $1,867/mo | | **67 (full retirement age)** | **100%** | **$2,000/mo** | | 68 | 108% | $2,160/mo | | 69 | 116% | $2,320/mo | | 70 | 124% | $2,480/mo | Full retirement age is 67 for anyone born in 1960 or later. If you were born earlier it is 66 and some months, and every percentage above shifts accordingly. ## The quiet tax argument for delaying The years between stopping work and claiming Social Security are usually the lowest-income years of your adult life. That makes them the cheapest possible window for Roth conversions — moving traditional 401(k) money to Roth while you are in a low bracket, before Social Security and required minimum distributions push your income back up at 73. Retirees who delay claiming and convert aggressively in the gap often save more in lifetime tax than the claiming decision itself is worth. ## The mistakes that cost the most - **Claiming at 62 by default** because it is the first date available, without ever running the numbers. - **Both spouses claiming early**, which permanently reduces the survivor benefit. - **Claiming while still earning a full salary** before full retirement age, and losing benefits to the earnings test. - **Delaying past 70.** Credits stop at 70. Every month after that is money given away for nothing. - **Assuming the trust fund shortfall means claim now.** Even on the trustees' own projections, the shortfall would reduce benefits, not end them, and it applies to everyone regardless of when they claimed. ## Frequently asked questions **What is the best age to take Social Security?** For a single person in good health with savings to bridge the gap, 70 usually produces the most lifetime income. For the higher earner in a couple, 70 is even stronger because it also raises the survivor benefit. For the lower earner in a couple, someone in poor health, or anyone who needs the income, claiming at or near 62 is often right. **How much less do I get if I claim at 62?** If your full retirement age is 67, claiming at 62 pays 70% of your full benefit — a permanent 30% reduction. On a $2,000 full benefit that is $1,400 a month instead of $2,000. **Can I work and collect Social Security?** Yes, but before full retirement age the earnings test withholds $1 of benefit for every $2 earned above roughly $23,400 a year. The withheld amount is credited back through a higher benefit at full retirement age. After full retirement age you can earn any amount with no reduction. **Should I claim early because Social Security might run out?** The trustees project the trust fund reserves depleting in the mid-2030s, after which incoming payroll taxes would still cover roughly three-quarters of scheduled benefits. Any reduction would apply to everyone, including people who claimed early, so claiming early does not protect you from it. **Does claiming early reduce my spouse’s survivor benefit?** Yes, if you are the higher earner. The survivor keeps the larger of the two benefits, so a reduced benefit taken at 62 becomes the ceiling for the survivor as well. This is the strongest argument for the higher earner to delay. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) 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. --- # Which States Tax Social Security? > Only eight states still tax Social Security, and most exempt it below an income threshold. The full list, the thresholds, and what other states tax instead. Source: https://savingslast.com/social-security-taxes-by-state/ Markdown: https://savingslast.com/social-security-taxes-by-state.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The list keeps getting shorter. Missouri, Nebraska and Kansas all dropped their Social Security tax in 2024, and West Virginia finished phasing its out for the 2026 tax year. Here is who is left — and why the answer matters less than it sounds. ## The 8 states that still tax Social Security | State | How it works | | --- | --- | | [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) | Taxed, with a full deduction at 65+ and an income-tested deduction at 55–64 | | [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) | Taxed above $75,000 AGI (single) / $100,000 (joint); exempt below | | [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) | Taxed, with a subtraction that is full below roughly $78,000 AGI (single) / $100,000 (joint) and phases out above | | [Montana](https://savingslast.com/retirement-taxes-in-montana/) | Taxed, following the federal calculation | | [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/) | Taxed, but exempt below $100,000 AGI (single) / $150,000 (joint) | | [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/) | Taxed, but exempt at full retirement age below roughly $104,000 AGI (single) / $130,000 (joint) | | [Utah](https://savingslast.com/retirement-taxes-in-utah/) | Taxed, offset by a retirement credit of up to $450 per person that phases out with income | | [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) | Taxed, exempt below $50,000 AGI (single) / $65,000 (joint) and phased out above | Read those carefully. Almost every one exempts the benefit entirely below an income threshold, and most of those thresholds are high enough that a typical retiree pays nothing. The list is a poor guide to who actually owes tax. ## The states that tax no retirement income at all **No income tax whatsoever (9):** [Alaska](https://savingslast.com/retirement-taxes-in-alaska/), [Florida](https://savingslast.com/retirement-taxes-in-florida/), [Nevada](https://savingslast.com/retirement-taxes-in-nevada/), [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/), [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/), [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/), [Texas](https://savingslast.com/retirement-taxes-in-texas/), [Washington](https://savingslast.com/retirement-taxes-in-washington/), [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/). **Income tax, but retirement income exempt (3):** [Illinois](https://savingslast.com/retirement-taxes-in-illinois/), [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/), [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/). These are the quiet winners — an ordinary income tax that simply does not reach pensions, 401(k) withdrawals or Social Security. **Exclusions large enough to cover a typical drawdown (4):** [Georgia](https://savingslast.com/retirement-taxes-in-georgia/), [Iowa](https://savingslast.com/retirement-taxes-in-iowa/), [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/), [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/). The income class is taxable in principle; the exclusion means an ordinary retiree owes nothing in practice, and a large one may still owe. ## The list keeps shrinking Twenty-six states taxed Social Security in some form in the 1990s. Missouri and Nebraska dropped it in 2024, Kansas removed its income cliff the same year, and West Virginia completed a three-year phase-out — 35% exempt in 2024, 65% in 2025, fully exempt from 2026. The direction of travel is one way, because taxing Social Security is politically expensive and raises comparatively little. ## Federal tax is the bigger number For most retirees the federal tax on Social Security is larger than any state's, and it applies identically in all fifty states. Up to 85% of the benefit becomes taxable once provisional income crosses thresholds that have not been adjusted for inflation since the 1980s. That is the one worth planning around — see [how Social Security is taxed](https://savingslast.com/is-social-security-taxable/). ## Every state in detail ## Retirement taxes by state - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Maryland](https://savingslast.com/retirement-taxes-in-maryland/) - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Missouri](https://savingslast.com/retirement-taxes-in-missouri/) - [Montana](https://savingslast.com/retirement-taxes-in-montana/) - [Nebraska](https://savingslast.com/retirement-taxes-in-nebraska/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) - [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/) - [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/) - [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/) - [New York](https://savingslast.com/retirement-taxes-in-new-york/) - [North Carolina](https://savingslast.com/retirement-taxes-in-north-carolina/) - [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/) - [Ohio](https://savingslast.com/retirement-taxes-in-ohio/) - [Oklahoma](https://savingslast.com/retirement-taxes-in-oklahoma/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) - [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/) - [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/) - [South Carolina](https://savingslast.com/retirement-taxes-in-south-carolina/) - [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/) - [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/) - [Texas](https://savingslast.com/retirement-taxes-in-texas/) - [Utah](https://savingslast.com/retirement-taxes-in-utah/) - [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) - [Virginia](https://savingslast.com/retirement-taxes-in-virginia/) - [Washington](https://savingslast.com/retirement-taxes-in-washington/) - [West Virginia](https://savingslast.com/retirement-taxes-in-west-virginia/) - [Wisconsin](https://savingslast.com/retirement-taxes-in-wisconsin/) - [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/) - [Washington, D.C.](https://savingslast.com/retirement-taxes-in-washington-dc/) ## Frequently asked questions **How many states tax Social Security?** Eight, as of the 2026 tax year: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Most of them exempt the benefit entirely below an income threshold, so the number of retirees actually paying is much smaller than the list suggests. **Which states do not tax retirement income at all?** Nine states levy no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Three more — Illinois, Mississippi and Pennsylvania — have an income tax but exempt retirement income from it. **Should I move to a state that does not tax Social Security?** Rarely on that basis alone. Social Security is usually the smaller part of a retiree’s taxable income, and states without an income tax recover the revenue through property or sales taxes. Compare the whole picture — income, property, sales and estate tax — not one line of it. **Does moving states change my federal tax on Social Security?** No. The federal provisional-income rules apply identically in all fifty states. Moving changes only the state layer, which for most retirees is the smaller of the two. ## More on Social Security - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [When to take Social Security](https://savingslast.com/when-to-take-social-security/) - [Money last with Social Security](https://savingslast.com/how-long-will-my-money-last-with-social-security/) - [Retirement income with SS](https://savingslast.com/retirement-income-calculator-with-social-security/) - [Social Security bridge](https://savingslast.com/social-security-bridge-calculator/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) ## Related calculators - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) 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. --- # Can I Retire at 55? > Retiring at 55 means a 40-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-55/ Markdown: https://savingslast.com/can-i-retire-at-55.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Retiring at 55 means funding a horizon of up to 40 years with no Social Security for at least seven of them and no Medicare for ten. It is the hardest version of this question, and the one where the withdrawal rate has to come down the most. Plan to 95 and that is a **40-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-55/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 40 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 40 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$978/mo** | $2,954/mo | | $500,000 | **$1,630/mo** | $3,606/mo | | $750,000 | **$2,445/mo** | $4,421/mo | | $1,000,000 | **$3,260/mo** | $5,236/mo | | $1,500,000 | **$4,890/mo** | $6,866/mo | | $2,000,000 | **$6,521/mo** | $8,497/mo | ## Getting at your money at 55 The **rule of 55** lets you take penalty-free withdrawals from the 401(k) of the employer you just left, if you separate from service in or after the year you turn 55. It does not apply to IRAs — and rolling that 401(k) into an IRA destroys the exemption, which is a common and expensive mistake. For IRA money before 59½ the route is a 72(t) series of substantially equal periodic payments, which locks you into a fixed schedule for five years or until 59½, whichever is longer. ## Health insurance Ten years of private health insurance before Medicare. An ACA marketplace plan is the usual answer, and because subsidies are based on income rather than assets, a retiree living partly on taxable-account savings and Roth money can often qualify for substantial help while holding a large portfolio. ## Social Security at 55 Social Security cannot start for another seven years. Retiring at 55 also stops your earnings record, and because benefits are calculated on your highest 35 years, early years of zeros can pull the eventual benefit down more than people expect. ## The withdrawal rate that fits a 40-year retirement A 40-year horizon takes the historically safe withdrawal rate down towards 3–3.25%. That is not a small adjustment: it means needing roughly a third more capital than a 65-year-old with the same spending. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 55?** Enough to cover your spending gap for 40 years. At a 3% withdrawal rate — appropriate for that horizon — every $100,000 supports about $250 a month. To produce $3,000 a month from savings alone you would need roughly $920,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 55?** Around 3% for a 40-year horizon. The familiar 4% rule was calibrated on 30 years, so a longer retirement needs a lower rate. On $750,000 the calculator puts the sustainable figure at about $2,445 a month. **Can I access my 401(k) at 55?** The rule of 55 lets you take penalty-free withdrawals from the 401(k) of the employer you just left, if you separate from service in or after the year you turn 55. It does not apply to IRAs — and rolling that 401(k) into an IRA destroys the exemption, which is a common and expensive mistake. For IRA money before 59½ the route is a 72(t) series of substantially equal periodic payments, which locks you into a fixed schedule for five years or until 59½, whichever is longer. **What about health insurance at 55?** Ten years of private health insurance before Medicare. An ACA marketplace plan is the usual answer, and because subsidies are based on income rather than assets, a retiree living partly on taxable-account savings and Roth money can often qualify for substantial help while holding a large portfolio. ## Other retirement ages - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # Can I Retire at 60? > Retiring at 60 means a 35-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-60/ Markdown: https://savingslast.com/can-i-retire-at-60.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Sixty is the sweet spot for early retirement: past the awkward 59½ line so every retirement account is accessible without penalty, but still five years short of Medicare and seven from full retirement age. Plan to 95 and that is a **35-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-60/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 35 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 35 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$1,062/mo** | $3,038/mo | | $500,000 | **$1,770/mo** | $3,746/mo | | $750,000 | **$2,656/mo** | $4,632/mo | | $1,000,000 | **$3,541/mo** | $5,517/mo | | $1,500,000 | **$5,311/mo** | $7,287/mo | | $2,000,000 | **$7,081/mo** | $9,057/mo | ## Getting at your money at 60 You are past 59½, so withdrawals from 401(k)s and IRAs are penalty-free. No rule of 55 gymnastics, no 72(t) schedule — the whole portfolio is available, and the only remaining question is which account to draw from first for tax reasons. ## Health insurance Five years of private cover before Medicare at 65. Budget $1,000–1,500 a month per person unless you qualify for ACA subsidies, and check whether your employer offers retiree medical — it is worth more than most severance packages. ## Social Security at 60 Two years until Social Security is even available at 62, and seven until full retirement age. These are ideal years for Roth conversions: no salary, no benefit, and the lowest tax brackets you will ever see again. ## The withdrawal rate that fits a 35-year retirement A 35-year horizon points to a safe withdrawal rate around 3.25–3.5%. The first five years carry the most sequence risk because spending is highest and no guaranteed income has started. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 60?** Enough to cover your spending gap for 35 years. At a 3.25% withdrawal rate — appropriate for that horizon — every $100,000 supports about $271 a month. To produce $3,000 a month from savings alone you would need roughly $847,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 60?** Around 3.25% for a 35-year horizon. The familiar 4% rule was calibrated on 30 years, so a longer retirement needs a lower rate. On $750,000 the calculator puts the sustainable figure at about $2,656 a month. **Can I access my 401(k) at 60?** You are past 59½, so withdrawals from 401(k)s and IRAs are penalty-free. No rule of 55 gymnastics, no 72(t) schedule — the whole portfolio is available, and the only remaining question is which account to draw from first for tax reasons. **What about health insurance at 60?** Five years of private cover before Medicare at 65. Budget $1,000–1,500 a month per person unless you qualify for ACA subsidies, and check whether your employer offers retiree medical — it is worth more than most severance packages. ## Other retirement ages - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # Can I Retire at 62? > Retiring at 62 means a 33-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-62/ Markdown: https://savingslast.com/can-i-retire-at-62.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Sixty-two is the earliest Social Security age, which makes it the most common early retirement date in America — and the one where the claiming decision does the most damage if it is made by default. Plan to 95 and that is a **33-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-62/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 33 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 33 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$1,103/mo** | $3,079/mo | | $500,000 | **$1,839/mo** | $3,815/mo | | $750,000 | **$2,759/mo** | $4,735/mo | | $1,000,000 | **$3,678/mo** | $5,654/mo | | $1,500,000 | **$5,517/mo** | $7,493/mo | | $2,000,000 | **$7,357/mo** | $9,333/mo | ## Getting at your money at 62 Every retirement account is available penalty-free. The decision that matters at 62 is not access but sequencing: whether to claim Social Security now at 70% of your full benefit, or to bridge from savings and let it grow 8% a year. ## Health insurance Three years of private cover before Medicare. Marketplace subsidies are income-tested, so a retiree who claims Social Security at 62 may push their income above a subsidy cliff and pay more for insurance than the benefit is worth in those three years. ## Social Security at 62 Claiming now pays 70% of your full benefit — a permanent 30% reduction if your full retirement age is 67. If you are the higher earner in a couple, that reduced amount also becomes the survivor benefit. Run the [break-even calculator](https://savingslast.com/social-security-break-even-calculator/) before deciding. ## The withdrawal rate that fits a 33-year retirement A 33-year horizon suggests roughly 3.5%. Claiming Social Security at 62 lowers the portfolio’s burden immediately, which is exactly why so many people do it — and why the long-term cost is easy to miss. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 62?** Enough to cover your spending gap for 33 years. At a 3.5% withdrawal rate — appropriate for that horizon — every $100,000 supports about $292 a month. To produce $3,000 a month from savings alone you would need roughly $816,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 62?** Around 3.5% for a 33-year horizon. The familiar 4% rule was calibrated on 30 years, so a longer retirement needs a lower rate. On $750,000 the calculator puts the sustainable figure at about $2,759 a month. **Can I access my 401(k) at 62?** Every retirement account is available penalty-free. The decision that matters at 62 is not access but sequencing: whether to claim Social Security now at 70% of your full benefit, or to bridge from savings and let it grow 8% a year. **What about health insurance at 62?** Three years of private cover before Medicare. Marketplace subsidies are income-tested, so a retiree who claims Social Security at 62 may push their income above a subsidy cliff and pay more for insurance than the benefit is worth in those three years. ## Other retirement ages - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # Can I Retire at 65? > Retiring at 65 means a 30-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-65/ Markdown: https://savingslast.com/can-i-retire-at-65.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Sixty-five is when Medicare starts, which removes the single largest uncertainty in early retirement budgeting. It is not, for anyone born after 1959, full retirement age for Social Security. Plan to 95 and that is a **30-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-65/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 30 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 30 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$1,176/mo** | $3,152/mo | | $500,000 | **$1,961/mo** | $3,937/mo | | $750,000 | **$2,941/mo** | $4,917/mo | | $1,000,000 | **$3,921/mo** | $5,897/mo | | $1,500,000 | **$5,882/mo** | $7,858/mo | | $2,000,000 | **$7,842/mo** | $9,818/mo | ## Getting at your money at 65 Everything is available. Sign up for Medicare during the seven-month window around your 65th birthday — missing it triggers permanent late-enrolment penalties on Part B and Part D. ## Health insurance Medicare begins. Budget for Part B premiums, a supplement or Advantage plan, and Part D. Note that premiums are income-tested through IRMAA, using your tax return from two years earlier — so a large Roth conversion at 63 raises your Medicare bill at 65. ## Social Security at 65 Full retirement age is 67, so claiming at 65 pays about 86.7% of your full benefit. Waiting the extra two years is worth 15% more for life, and three more years to 70 is worth 24% above the full amount. ## The withdrawal rate that fits a 30-year retirement A 30-year horizon is the classic case the 4% rule was built on, so 3.75–4% is defensible. This is the first age at which the standard rule of thumb genuinely applies to you. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 65?** Enough to cover your spending gap for 30 years. At a 3.75% withdrawal rate — appropriate for that horizon — every $100,000 supports about $313 a month. To produce $3,000 a month from savings alone you would need roughly $765,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 65?** Around 3.75% for a 30-year horizon. The familiar 4% rule was calibrated on 30 years, so a shorter retirement can support a somewhat higher one. On $750,000 the calculator puts the sustainable figure at about $2,941 a month. **Can I access my 401(k) at 65?** Everything is available. Sign up for Medicare during the seven-month window around your 65th birthday — missing it triggers permanent late-enrolment penalties on Part B and Part D. **What about health insurance at 65?** Medicare begins. Budget for Part B premiums, a supplement or Advantage plan, and Part D. Note that premiums are income-tested through IRMAA, using your tax return from two years earlier — so a large Roth conversion at 63 raises your Medicare bill at 65. ## Other retirement ages - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # Can I Retire at 67? > Retiring at 67 means a 28-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-67/ Markdown: https://savingslast.com/can-i-retire-at-67.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Full retirement age for anyone born in 1960 or later: the first date you can claim 100% of your Social Security benefit with no earnings test on anything you go on to earn. Plan to 95 and that is a **28-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-67/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 28 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 28 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$1,234/mo** | $3,210/mo | | $500,000 | **$2,057/mo** | $4,033/mo | | $750,000 | **$3,085/mo** | $5,061/mo | | $1,000,000 | **$4,113/mo** | $6,089/mo | | $1,500,000 | **$6,170/mo** | $8,146/mo | | $2,000,000 | **$8,227/mo** | $10,203/mo | ## Getting at your money at 67 All accounts available. Required minimum distributions are still six years away at 73, which makes 67 to 72 the last good window for Roth conversions before the IRS starts forcing withdrawals. ## Health insurance Medicare is already running. The live issue is IRMAA — the income-tested surcharge on Part B and Part D premiums — which is assessed on your income from two years prior and steps up in cliffs rather than tapering. ## Social Security at 67 You receive 100% of your full benefit, and there is no earnings test, so you can work as much as you like without any reduction. Delaying further still adds 8% a year up to 70. ## The withdrawal rate that fits a 28-year retirement A 28-year horizon supports the classic 4% rule with reasonable confidence. The main risk shifts from running out of money to spending too cautiously and dying with most of it unspent. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 67?** Enough to cover your spending gap for 28 years. At a 4% withdrawal rate — appropriate for that horizon — every $100,000 supports about $333 a month. To produce $3,000 a month from savings alone you would need roughly $729,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 67?** Around 4% for a 28-year horizon. The familiar 4% rule was calibrated on 30 years, so a shorter retirement can support a somewhat higher one. On $750,000 the calculator puts the sustainable figure at about $3,085 a month. **Can I access my 401(k) at 67?** All accounts available. Required minimum distributions are still six years away at 73, which makes 67 to 72 the last good window for Roth conversions before the IRS starts forcing withdrawals. **What about health insurance at 67?** Medicare is already running. The live issue is IRMAA — the income-tested surcharge on Part B and Part D premiums — which is assessed on your income from two years prior and steps up in cliffs rather than tapering. ## Other retirement ages - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 70](https://savingslast.com/can-i-retire-at-70/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # Can I Retire at 70? > Retiring at 70 means a 25-year horizon. See the balance required, the safe withdrawal rate, healthcare before Medicare, and how Social Security fits. Source: https://savingslast.com/can-i-retire-at-70/ Markdown: https://savingslast.com/can-i-retire-at-70.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Seventy is the maximum-benefit age for Social Security and the point at which delaying any longer is simply giving money away. It also means a shorter horizon, which supports a materially higher withdrawal rate. Plan to 95 and that is a **25-year** horizon — which is the number that decides everything else on this page. *Interactive calculator on the page: https://savingslast.com/can-i-retire-at-70/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## What each balance supports to age 95 The middle column is the largest monthly withdrawal that survives 25 years at 5% returns and 2.5% inflation, rising with inflation each year. The right-hand column adds an average Social Security benefit once it starts. | Balance | Sustainable for 25 years (to 95) | Plus average Social Security from 67 | | --- | --- | --- | | $300,000 | **$1,339/mo** | $3,315/mo | | $500,000 | **$2,231/mo** | $4,207/mo | | $750,000 | **$3,347/mo** | $5,323/mo | | $1,000,000 | **$4,462/mo** | $6,438/mo | | $1,500,000 | **$6,693/mo** | $8,669/mo | | $2,000,000 | **$8,924/mo** | $10,900/mo | ## Getting at your money at 70 All accounts available. Required minimum distributions begin at 73 (75 for those born in 1960 or later), so there are only a few years left to do anything about the size of the traditional balance. ## Health insurance Medicare is established. Long-term care becomes the dominant planning question — a meaningful minority of retirees need care costing $60,000–120,000 a year, and it is the main risk a drawdown model cannot see. ## Social Security at 70 You receive 124% of your full benefit, permanently, with cost-of-living adjustments compounding on the larger base. There is no reason to delay past this point — credits stop accruing on your 70th birthday. ## The withdrawal rate that fits a 25-year retirement A 25-year horizon supports roughly 4.5%. With the maximum Social Security benefit running underneath it, the portfolio is carrying less of the load than at any earlier retirement age. Sequence-of-returns risk is the reason the rate has to come down rather than the arithmetic average of returns. Two retirees with identical average returns end up in very different places depending on whether the bad years land early or late, because early losses are crystallised by the withdrawals taken during them. The standard defences are holding one to two years of spending in cash, trimming discretionary spending roughly 10% after a bad year, and keeping some part-time income available in the first five years. ## Frequently asked questions **How much money do I need to retire at 70?** Enough to cover your spending gap for 25 years. At a 4.5% withdrawal rate — appropriate for that horizon — every $100,000 supports about $375 a month. To produce $3,000 a month from savings alone you would need roughly $672,000; add an average Social Security benefit from 67 and the requirement drops sharply. **What is a safe withdrawal rate at 70?** Around 4.5% for a 25-year horizon. The familiar 4% rule was calibrated on 30 years, so a shorter retirement can support a somewhat higher one. On $750,000 the calculator puts the sustainable figure at about $3,347 a month. **Can I access my 401(k) at 70?** All accounts available. Required minimum distributions begin at 73 (75 for those born in 1960 or later), so there are only a few years left to do anything about the size of the traditional balance. **What about health insurance at 70?** Medicare is established. Long-term care becomes the dominant planning question — a meaningful minority of retirees need care costing $60,000–120,000 a year, and it is the main risk a drawdown model cannot see. ## Other retirement ages - [Retire at 55](https://savingslast.com/can-i-retire-at-55/) - [Retire at 60](https://savingslast.com/can-i-retire-at-60/) - [Retire at 62](https://savingslast.com/can-i-retire-at-62/) - [Retire at 65](https://savingslast.com/can-i-retire-at-65/) - [Retire at 67](https://savingslast.com/can-i-retire-at-67/) ## Related - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) - [Social Security break-even](https://savingslast.com/social-security-break-even-calculator/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement taxes by state](https://savingslast.com/retirement-taxes-by-state/) 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. --- # How Long Will $1 Million Last in Retirement? > # How Long Will $1 Million Last in Retirement? Million supports about $3,921/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-1-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-1-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($3,333/month) with 5% returns and 2.5% inflation, $1 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-1-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $1 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $2,500/mo | 3% | 36.5 years | 68.0 years | ∞ | | $3,350/mo | 4% | 26.6 years | 38.2 years | ∞ | | $4,150/mo | 5% | 21.3 years | 27.6 years | 46.8 years | | $5,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $6,650/mo | 8% | 13.0 years | 15.0 years | 18.2 years | ## What $1 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $1 Million at a 4% withdrawal rate is **$39,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $1 Million saved is looking at roughly **$5,309 a month** before tax. A couple with two benefits does materially better. $1 million is the number most people anchor on, and it works: a 4% withdrawal is $40,000 a year, and with two Social Security benefits a couple can land near $90,000 of pre-tax income. The risk is not running out — it is spending too cautiously and dying with most of it unspent. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $1 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $1 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $1 Million produces about $3,333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $1 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $1 Million each month?** To make $1 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $3,921 per month, rising with inflation each year. For a 25-year horizon it is about $4,462. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) 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. --- # How Long Will $1.2 Million Last in Retirement? > # How Long Will $1.2 Million Last in Retirement?.2 Million supports about $4,705/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-1-2-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-1-2-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($4,000/month) with 5% returns and 2.5% inflation, $1.2 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-1-2-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $1.2 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $3,000/mo | 3% | 36.5 years | 68.0 years | ∞ | | $4,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $5,000/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $6,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $8,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $1.2 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $1.2 Million at a 4% withdrawal rate is **$48,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $1.2 Million saved is looking at roughly **$5,976 a month** before tax. A couple with two benefits does materially better. At $1.2 million a 3.5% withdrawal — which historically survived every 30-year period in U.S. data — still provides $3,500 a month. That lets you be conservative on the withdrawal rate without a meaningful lifestyle cost. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $1.2 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $1.2 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $1.2 Million produces about $4,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $1.2 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $1.2 Million each month?** To make $1.2 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $4,705 per month, rising with inflation each year. For a 25-year horizon it is about $5,354. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) 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. --- # How Long Will $1.5 Million Last in Retirement? > # How Long Will $1.5 Million Last in Retirement?.5 Million supports about $5,882/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-1-5-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-1-5-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($5,000/month) with 5% returns and 2.5% inflation, $1.5 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-1-5-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $1.5 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $3,750/mo | 3% | 36.5 years | 68.0 years | ∞ | | $5,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $6,250/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $7,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $10,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $1.5 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $1.5 Million at a 4% withdrawal rate is **$60,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $1.5 Million saved is looking at roughly **$6,976 a month** before tax. A couple with two benefits does materially better. $1.5 million comfortably funds a 30-year retirement at a 4% withdrawal ($5,000/month) and, in most return scenarios, leaves a substantial estate. The planning focus shifts to tax efficiency, healthcare before Medicare at 65, and whether to self-insure long-term care. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $1.5 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $1.5 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $1.5 Million produces about $5,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $1.5 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $1.5 Million each month?** To make $1.5 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $5,882 per month, rising with inflation each year. For a 25-year horizon it is about $6,693. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) 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. --- # How Long Will $100,000 Last in Retirement? > # How Long Will $100,000 Last in Retirement?00,000 supports about $392/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-100k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-100k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($333/month) with 5% returns and 2.5% inflation, $100,000 lasts about **38.6 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-100k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $100,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $250/mo | 3% | 36.5 years | 68.0 years | ∞ | | $350/mo | 4% | 25.4 years | 35.6 years | ∞ | | $400/mo | 5% | 22.1 years | 29.1 years | 53.3 years | | $500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $650/mo | 8% | 13.3 years | 15.4 years | 18.8 years | ## What $100,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $100,000 at a 4% withdrawal rate is **$3,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $100,000 saved is looking at roughly **$2,309 a month** before tax. A couple with two benefits does materially better. $100,000 on its own is a cushion, not a retirement. It is best thought of as an emergency reserve and a bridge fund that lets you delay Social Security by a year or two — which permanently raises that benefit and is often the highest-return move available. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $100,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $100,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $100,000 produces about $333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $100,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $100,000 each month?** To make $100,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $392 per month, rising with inflation each year. For a 25-year horizon it is about $446. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) 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. --- # How Long Will $150,000 Last in Retirement? > # How Long Will $150,000 Last in Retirement?50,000 supports about $588/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-150k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-150k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($500/month) with 5% returns and 2.5% inflation, $150,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-150k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $150,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $400/mo | 3% | 34.0 years | 58.5 years | ∞ | | $500/mo | 4% | 26.8 years | 38.5 years | ∞ | | $650/mo | 5% | 20.3 years | 26.0 years | 41.2 years | | $750/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $1,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $150,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $150,000 at a 4% withdrawal rate is **$6,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $150,000 saved is looking at roughly **$2,476 a month** before tax. A couple with two benefits does materially better. $150,000 is the balance where the honest answer is usually “not yet” for a full retirement, but “yes” for something narrower: covering a two-year gap to Medicare, funding a career change, or delaying Social Security from 62 to 65 so the benefit rises permanently. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $150,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $150,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $150,000 produces about $500 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $150,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $150,000 each month?** To make $150,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $588 per month, rising with inflation each year. For a 25-year horizon it is about $669. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) 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. --- # How Long Will $2 Million Last in Retirement? > $2 Million supports about $7,842/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-2-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-2-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($6,667/month) with 5% returns and 2.5% inflation, $2 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-2-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $2 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $5,000/mo | 3% | 36.5 years | 68.0 years | ∞ | | $6,650/mo | 4% | 26.8 years | 38.7 years | ∞ | | $8,350/mo | 5% | 21.1 years | 27.4 years | 45.9 years | | $10,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $13,350/mo | 8% | 12.9 years | 14.9 years | 18.0 years | ## What $2 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $2 Million at a 4% withdrawal rate is **$80,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $2 Million saved is looking at roughly **$8,643 a month** before tax. A couple with two benefits does materially better. With $2 million, a 3% withdrawal ($5,000/month) is close to indefinitely sustainable at historical returns. Most retirees at this level never touch principal in real terms. The bigger questions are legacy, charitable giving, and keeping the portfolio from being too conservative. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $2 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $2 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $2 Million produces about $6,667 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $2 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $2 Million each month?** To make $2 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $7,842 per month, rising with inflation each year. For a 25-year horizon it is about $8,924. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [HSA in retirement](https://savingslast.com/hsa-retirement-calculator/) - [How long will my money last](https://savingslast.com/) - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) 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. --- # How Long Will $2.5 Million Last in Retirement? > $2.5 Million supports about $9,803/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-2-5-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-2-5-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($8,333/month) with 5% returns and 2.5% inflation, $2.5 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-2-5-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $2.5 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $6,250/mo | 3% | 36.5 years | 68.0 years | ∞ | | $8,350/mo | 4% | 26.7 years | 38.4 years | ∞ | | $10,400/mo | 5% | 21.2 years | 27.5 years | 46.5 years | | $12,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $16,650/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $2.5 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $2.5 Million at a 4% withdrawal rate is **$99,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $2.5 Million saved is looking at roughly **$10,309 a month** before tax. A couple with two benefits does materially better. $2.5 million produces $100,000 a year at 4%, or $75,000 at a very safe 3%. At this level, taxes on withdrawals (and on Social Security, which becomes up to 85% taxable) are usually the largest single "expense," and an advisor or CPA typically pays for themselves. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $2.5 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $2.5 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $2.5 Million produces about $8,333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $2.5 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $2.5 Million each month?** To make $2.5 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $9,803 per month, rising with inflation each year. For a 25-year horizon it is about $11,155. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Money last in retirement](https://savingslast.com/how-long-will-my-money-last-in-retirement/) - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) 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. --- # How Long Will $200,000 Last in Retirement? > $200,000 supports about $784/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-200k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-200k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($667/month) with 5% returns and 2.5% inflation, $200,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.5 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-200k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $200,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $500/mo | 3% | 36.5 years | 68.0 years | ∞ | | $650/mo | 4% | 27.5 years | 40.2 years | ∞ | | $850/mo | 5% | 20.7 years | 26.7 years | 43.5 years | | $1,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $1,350/mo | 8% | 12.8 years | 14.8 years | 17.8 years | ## What $200,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $200,000 at a 4% withdrawal rate is **$8,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $200,000 saved is looking at roughly **$2,643 a month** before tax. A couple with two benefits does materially better. $200,000 supports a modest supplement to Social Security rather than replacing it. Retirees in this range generally do best treating savings as a flexible buffer — drawing more in expensive years, less in cheap ones — rather than a fixed monthly paycheck. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $200,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $200,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $200,000 produces about $667 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $200,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $200,000 each month?** To make $200,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $784 per month, rising with inflation each year. For a 25-year horizon it is about $892. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) 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. --- # How Long Will $250,000 Last in Retirement? > $250,000 supports about $980/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-250k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-250k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($833/month) with 5% returns and 2.5% inflation, $250,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-250k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $250,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $650/mo | 3% | 35.0 years | 61.9 years | ∞ | | $850/mo | 4% | 26.2 years | 37.3 years | ∞ | | $1,050/mo | 5% | 20.9 years | 27.2 years | 45.1 years | | $1,250/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $1,650/mo | 8% | 13.1 years | 15.2 years | 18.3 years | ## What $250,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $250,000 at a 4% withdrawal rate is **$9,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $250,000 saved is looking at roughly **$2,809 a month** before tax. A couple with two benefits does materially better. At $250,000, the difference between a 4% and a 6% withdrawal rate is only about $400 a month, but it can be the difference between the money lasting through your 80s and running out in your late 70s. Spending discipline matters more here than investment selection. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $250,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $250,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $250,000 produces about $833 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $250,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $250,000 each month?** To make $250,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $980 per month, rising with inflation each year. For a 25-year horizon it is about $1,116. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Retirement savings lifespan](https://savingslast.com/how-long-will-my-retirement-savings-last/) - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) 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. --- # How Long Will $3 Million Last in Retirement? > $3 Million supports about # How Long Will $3 Million Last in Retirement?1,764/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-3-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-3-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($10,000/month) with 5% returns and 2.5% inflation, $3 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-3-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $3 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $7,500/mo | 3% | 36.5 years | 68.0 years | ∞ | | $10,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $12,500/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $15,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $20,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $3 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $3 Million at a 4% withdrawal rate is **$120,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $3 Million saved is looking at roughly **$11,976 a month** before tax. A couple with two benefits does materially better. $3 million is well past the point where running out is the main risk in a normal 30-year retirement. Planning here is about withdrawal sequencing across account types, Roth conversions, estate structure, and resisting the temptation to hold too much cash. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $3 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $3 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $3 Million produces about $10,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $3 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $3 Million each month?** To make $3 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $11,764 per month, rising with inflation each year. For a 25-year horizon it is about $13,386. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) - [72(t) / SEPP](https://savingslast.com/72t-distribution-calculator/) - [RMD calculator](https://savingslast.com/rmd-calculator/) - [Roth conversion](https://savingslast.com/roth-conversion-calculator/) - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) 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. --- # How Long Will $300,000 Last in Retirement? > $300,000 supports about # How Long Will $300,000 Last in Retirement?,176/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-300k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-300k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($1,000/month) with 5% returns and 2.5% inflation, $300,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-300k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $300,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $750/mo | 3% | 36.5 years | 68.0 years | ∞ | | $1,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $1,250/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $1,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $2,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $300,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $300,000 at a 4% withdrawal rate is **$12,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $300,000 saved is looking at roughly **$2,976 a month** before tax. A couple with two benefits does materially better. $300,000 is close to the median 401(k) balance for households near retirement, so this is the realistic case for a large share of Americans. Paired with Social Security and a paid-off home, it funds a comfortable but careful retirement in most of the country. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $300,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $300,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $300,000 produces about $1,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $300,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $300,000 each month?** To make $300,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $1,176 per month, rising with inflation each year. For a 25-year horizon it is about $1,339. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) 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. --- # How Long Will $350,000 Last in Retirement? > $350,000 supports about # How Long Will $350,000 Last in Retirement?,372/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-350k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-350k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($1,167/month) with 5% returns and 2.5% inflation, $350,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.5 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-350k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $350,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $900/mo | 3% | 35.4 years | 63.5 years | ∞ | | $1,150/mo | 4% | 27.2 years | 39.4 years | ∞ | | $1,450/mo | 5% | 21.3 years | 27.7 years | 47.1 years | | $1,750/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $2,350/mo | 8% | 12.8 years | 14.8 years | 17.9 years | ## What $350,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $350,000 at a 4% withdrawal rate is **$14,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $350,000 saved is looking at roughly **$3,143 a month** before tax. A couple with two benefits does materially better. At $350,000 the decision is rarely about investment returns and almost always about housing. Owning outright in a low-cost state makes this comfortable alongside Social Security; carrying rent or a mortgage in a high-cost metro makes it unworkable at any withdrawal rate. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $350,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $350,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $350,000 produces about $1,167 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $350,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $350,000 each month?** To make $350,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $1,372 per month, rising with inflation each year. For a 25-year horizon it is about $1,562. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # How Long Will $4 Million Last in Retirement? > $4 Million supports about # How Long Will $4 Million Last in Retirement?5,685/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-4-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-4-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($13,333/month) with 5% returns and 2.5% inflation, $4 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-4-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $4 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $10,000/mo | 3% | 36.5 years | 68.0 years | ∞ | | $13,350/mo | 4% | 26.8 years | 38.4 years | ∞ | | $16,650/mo | 5% | 21.2 years | 27.5 years | 46.4 years | | $20,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $26,650/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $4 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $4 Million at a 4% withdrawal rate is **$159,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $4 Million saved is looking at roughly **$15,309 a month** before tax. A couple with two benefits does materially better. At $4 million a 3% withdrawal is $10,000 a month and the portfolio still grows in real terms under most assumptions. Running out is no longer a plausible risk; the live questions are estate tax thresholds in states like Oregon and Massachusetts, charitable structure, and Roth conversions before required distributions begin. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $4 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $4 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $4 Million produces about $13,333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $4 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $4 Million each month?** To make $4 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $15,685 per month, rising with inflation each year. For a 25-year horizon it is about $17,848. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [How long savings last](https://savingslast.com/how-long-will-my-savings-last/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) 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. --- # How Long Will $400,000 Last in Retirement? > $400,000 supports about # How Long Will $400,000 Last in Retirement?,568/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-400k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-400k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($1,333/month) with 5% returns and 2.5% inflation, $400,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-400k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $400,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,000/mo | 3% | 36.5 years | 68.0 years | ∞ | | $1,350/mo | 4% | 26.4 years | 37.8 years | ∞ | | $1,650/mo | 5% | 21.3 years | 27.8 years | 47.8 years | | $2,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $2,650/mo | 8% | 13.1 years | 15.1 years | 18.3 years | ## What $400,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $400,000 at a 4% withdrawal rate is **$15,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $400,000 saved is looking at roughly **$3,309 a month** before tax. A couple with two benefits does materially better. With $400,000, housing costs decide everything. A paid-off home in a lower-cost state makes this balance comfortable; a mortgage or high rent in a coastal metro makes it tight. Run the calculator with your real housing number, not a national average. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $400,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $400,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $400,000 produces about $1,333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $400,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $400,000 each month?** To make $400,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $1,568 per month, rising with inflation each year. For a 25-year horizon it is about $1,785. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # How Long Will $450,000 Last in Retirement? > $450,000 supports about # How Long Will $450,000 Last in Retirement?,765/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-450k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-450k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($1,500/month) with 5% returns and 2.5% inflation, $450,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-450k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $450,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,150/mo | 3% | 35.7 years | 64.4 years | ∞ | | $1,500/mo | 4% | 26.8 years | 38.5 years | ∞ | | $1,900/mo | 5% | 20.8 years | 26.9 years | 44.4 years | | $2,250/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $3,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $450,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $450,000 at a 4% withdrawal rate is **$18,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $450,000 saved is looking at roughly **$3,476 a month** before tax. A couple with two benefits does materially better. $450,000 sits just below the psychological half-million line but behaves almost identically — a 4% withdrawal is $1,500 a month, and combined with an average Social Security benefit a single retiree clears roughly $3,470 a month before tax. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $450,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $450,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $450,000 produces about $1,500 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $450,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $450,000 each month?** To make $450,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $1,765 per month, rising with inflation each year. For a 25-year horizon it is about $2,008. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) 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. --- # How Long Will $5 Million Last in Retirement? > $5 Million supports about # How Long Will $5 Million Last in Retirement?9,606/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-5-million-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-5-million-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($16,667/month) with 5% returns and 2.5% inflation, $5 Million lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-5-million-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $5 Million: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $12,500/mo | 3% | 36.5 years | 68.0 years | ∞ | | $16,650/mo | 4% | 26.8 years | 38.6 years | ∞ | | $20,850/mo | 5% | 21.1 years | 27.4 years | 46.2 years | | $25,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $33,350/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $5 Million actually buys you Retirement math is an income problem, not a lump-sum problem. $5 Million at a 4% withdrawal rate is **$200,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $5 Million saved is looking at roughly **$18,643 a month** before tax. A couple with two benefits does materially better. At $5 million, even a 2% withdrawal is $100,000 a year, and the portfolio will almost certainly grow in real terms across retirement. The calculator will show "indefinitely" for most reasonable inputs; the planning work is entirely tax and estate. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $5 Million last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $5 Million?** It depends on spending, not the number alone. At a 4% withdrawal rate $5 Million produces about $16,667 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $5 Million can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $5 Million each month?** To make $5 Million last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $19,606 per month, rising with inflation each year. For a 25-year horizon it is about $22,310. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Bridge to 59½](https://savingslast.com/retire-early-bridge-calculator/) - [Early withdrawal penalty](https://savingslast.com/early-withdrawal-penalty-calculator/) - [Inherited IRA](https://savingslast.com/inherited-ira-calculator/) - [Roth IRA withdrawals](https://savingslast.com/roth-ira-withdrawal-calculator/) - [SEP IRA withdrawals](https://savingslast.com/sep-ira-withdrawal-calculator/) - [SIMPLE IRA withdrawals](https://savingslast.com/simple-ira-withdrawal-calculator/) 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. --- # How Long Will $500,000 Last in Retirement? > $500,000 supports about # How Long Will $500,000 Last in Retirement?,961/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-500k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-500k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($1,667/month) with 5% returns and 2.5% inflation, $500,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.5 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-500k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $500,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,250/mo | 3% | 36.5 years | 68.0 years | ∞ | | $1,650/mo | 4% | 27.1 years | 39.2 years | ∞ | | $2,100/mo | 5% | 20.9 years | 27.2 years | 45.1 years | | $2,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $3,350/mo | 8% | 12.9 years | 14.9 years | 17.9 years | ## What $500,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $500,000 at a 4% withdrawal rate is **$20,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $500,000 saved is looking at roughly **$3,643 a month** before tax. A couple with two benefits does materially better. $500,000 is the classic "can I retire?" balance. At a 4% withdrawal it produces about $1,667 a month — roughly matching an average Social Security benefit, so a single retiree lands near $3,600 a month before tax. Many retire comfortably on that; many would not. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $500,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $500,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $500,000 produces about $1,667 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $500,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $500,000 each month?** To make $500,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $1,961 per month, rising with inflation each year. For a 25-year horizon it is about $2,231. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) 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. --- # How Long Will $600,000 Last in Retirement? > $600,000 supports about $2,353/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-600k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-600k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($2,000/month) with 5% returns and 2.5% inflation, $600,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-600k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $600,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,500/mo | 3% | 36.5 years | 68.0 years | ∞ | | $2,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $2,500/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $3,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $4,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $600,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $600,000 at a 4% withdrawal rate is **$24,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $600,000 saved is looking at roughly **$3,976 a month** before tax. A couple with two benefits does materially better. At $600,000 you gain real flexibility: a 3.5% withdrawal still covers a meaningful share of expenses, and you can afford to keep two years of spending in cash to ride out a bad market without selling stocks at the bottom. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $600,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $600,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $600,000 produces about $2,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $600,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $600,000 each month?** To make $600,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $2,353 per month, rising with inflation each year. For a 25-year horizon it is about $2,677. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) 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. --- # How Long Will $700,000 Last in Retirement? > $700,000 supports about $2,745/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-700k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-700k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($2,333/month) with 5% returns and 2.5% inflation, $700,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-700k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $700,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,750/mo | 3% | 36.5 years | 68.0 years | ∞ | | $2,350/mo | 4% | 26.6 years | 38.1 years | ∞ | | $2,900/mo | 5% | 21.3 years | 27.7 years | 47.1 years | | $3,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $4,650/mo | 8% | 13.0 years | 15.0 years | 18.2 years | ## What $700,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $700,000 at a 4% withdrawal rate is **$27,996 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $700,000 saved is looking at roughly **$4,309 a month** before tax. A couple with two benefits does materially better. At $700,000 you can afford the thing that matters most in the first years of retirement: holding two years of spending in cash so a bad market never forces a sale. That single habit historically adds more to portfolio survival than any change of asset allocation. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $700,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $700,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $700,000 produces about $2,333 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $700,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $700,000 each month?** To make $700,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $2,745 per month, rising with inflation each year. For a 25-year horizon it is about $3,123. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) 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. --- # How Long Will $750,000 Last in Retirement? > $750,000 supports about $2,941/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-750k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-750k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($2,500/month) with 5% returns and 2.5% inflation, $750,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-750k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $750,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $1,900/mo | 3% | 36.0 years | 65.8 years | ∞ | | $2,500/mo | 4% | 26.8 years | 38.5 years | ∞ | | $3,150/mo | 5% | 20.9 years | 27.2 years | 45.1 years | | $3,750/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $5,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $750,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $750,000 at a 4% withdrawal rate is **$30,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $750,000 saved is looking at roughly **$4,476 a month** before tax. A couple with two benefits does materially better. $750,000 is where the "how long will it last" question starts turning into "how much can I safely enjoy." A 4% rule withdrawal is $2,500 a month; with Social Security most single retirees clear $4,000–4,500 a month, which is above the median household income in many states. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $750,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $750,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $750,000 produces about $2,500 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $750,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $750,000 each month?** To make $750,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $2,941 per month, rising with inflation each year. For a 25-year horizon it is about $3,347. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [Retirement drawdown calculator](https://savingslast.com/retirement-drawdown-calculator/) - [Savings withdrawal calculator](https://savingslast.com/savings-withdrawal-calculator/) - [401(k) distribution calculator](https://savingslast.com/401k-distribution-calculator/) - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) 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. --- # How Long Will $800,000 Last in Retirement? > $800,000 supports about $3,137/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-800k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-800k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($2,667/month) with 5% returns and 2.5% inflation, $800,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-800k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $800,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $2,000/mo | 3% | 36.5 years | 68.0 years | ∞ | | $2,650/mo | 4% | 26.9 years | 38.9 years | ∞ | | $3,350/mo | 5% | 21.0 years | 27.3 years | 45.5 years | | $4,000/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $5,350/mo | 8% | 12.9 years | 14.9 years | 18.0 years | ## What $800,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $800,000 at a 4% withdrawal rate is **$32,004 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $800,000 saved is looking at roughly **$4,643 a month** before tax. A couple with two benefits does materially better. With $800,000, tax planning becomes worth real money. Roth conversions in low-income years between retirement and required minimum distributions (age 73–75) can save tens of thousands over a retirement, which matters more than squeezing an extra 0.5% of return. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $800,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $800,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $800,000 produces about $2,667 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $800,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $800,000 each month?** To make $800,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $3,137 per month, rising with inflation each year. For a 25-year horizon it is about $3,570. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$900,000 in retirement](https://savingslast.com/how-long-will-900k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) - [Rule of 55](https://savingslast.com/rule-of-55-calculator/) 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. --- # How Long Will $900,000 Last in Retirement? > $900,000 supports about $3,529/month for 30 years at 5% returns and 2.5% inflation. See how long it lasts at your own withdrawal rate. Source: https://savingslast.com/how-long-will-900k-last-in-retirement/ Markdown: https://savingslast.com/how-long-will-900k-last-in-retirement.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Short answer:** withdrawing 4% a year ($3,000/month) with 5% returns and 2.5% inflation, $900,000 lasts about **38.5 years**. At 5% withdrawals it lasts about 27.4 years. Your spending and returns change that a lot — run your own numbers below. *Interactive calculator on the page: https://savingslast.com/how-long-will-900k-last-in-retirement/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* ## $900,000: years it lasts by withdrawal and return Each cell is how long the balance survives when withdrawals start at the monthly amount shown and then grow 2.5% a year with inflation. "∞" means growth outpaces withdrawals and the balance never runs out. | Monthly withdrawal | Annual rate | 3% return | 5% return | 7% return | | --- | --- | --- | --- | --- | | $2,250/mo | 3% | 36.5 years | 68.0 years | ∞ | | $3,000/mo | 4% | 26.8 years | 38.5 years | ∞ | | $3,750/mo | 5% | 21.2 years | 27.4 years | 46.3 years | | $4,500/mo | 6% | 17.5 years | 21.4 years | 29.6 years | | $6,000/mo | 8% | 13.0 years | 15.0 years | 18.1 years | ## What $900,000 actually buys you Retirement math is an income problem, not a lump-sum problem. $900,000 at a 4% withdrawal rate is **$36,000 a year**. The typical retired worker receives about $1,976 a month from Social Security, so a single person with $900,000 saved is looking at roughly **$4,976 a month** before tax. A couple with two benefits does materially better. $900,000 is close enough to the million-dollar mark that the planning is identical, and the last $100,000 changes nothing about the strategy. A 4% withdrawal is $3,000 a month; with Social Security most single retirees clear $4,900 before tax and couples do considerably better. ## Three things that move the answer more than the starting balance - **Withdrawal rate.** The gap between 4% and 6% is not "a bit shorter" — in the table above it is often the difference between lasting 30+ years and running dry in the early 20s. - **Sequence of returns.** The calculator uses a steady average. Real retirees who hit a bear market in years one through three of retirement fare worse than the average suggests. Keeping one to two years of spending in cash or short-term bonds is the standard defence. - **Inflation.** At 2.5% inflation, spending doubles in about 28 years. The calculator raises your withdrawal every year to preserve purchasing power; fixed-dollar withdrawals would last longer on paper but leave you poorer in real terms. ## How to make $900,000 last longer - **Delay Social Security.** Each year you wait from 62 to 70 raises the benefit roughly 7–8%. Bridging a few years from savings can be worth it if you're healthy. - **Use a flexible withdrawal rule.** Cutting spending 10% after a bad year (the "guardrails" approach) adds years of survival in most historical scenarios. - **Mind the tax wrapper.** Drawing from taxable accounts first, then traditional, then Roth is the textbook order; it often beats pro-rata withdrawals by a year or two of portfolio life. - **Part-time income.** Even $1,000 a month of work in the first five years cuts the withdrawal rate dramatically during the most dangerous sequence-risk window. ## Frequently asked questions **Can I retire on $900,000?** It depends on spending, not the number alone. At a 4% withdrawal rate $900,000 produces about $3,000 a month before tax. Add Social Security (the average retired-worker benefit is about $1,976/month) and compare that total to your real monthly expenses. If expenses are covered with a margin, $900,000 can work; if not, you need lower spending, more income, or a later retirement date. **How much can I withdraw from $900,000 each month?** To make $900,000 last 30 years at 5% average returns and 2.5% inflation, the calculator shows a starting withdrawal of about $3,529 per month, rising with inflation each year. For a 25-year horizon it is about $4,016. **What return should I assume?** A balanced 60/40 portfolio has historically returned roughly 6–8% a year nominal, but sequence risk means early losses hurt more than the average suggests. Most planners test 4–6% for a conservative plan. Use the calculator above to see how sensitive your result is — that sensitivity is the real lesson. **Does this include taxes?** The table assumes no tax. If the money is in a traditional 401(k) or IRA, withdrawals are taxed as ordinary income — enter your expected tax rate in the calculator and it will gross up each withdrawal accordingly. Roth and taxable-brokerage money behave differently. ## Other balances - [$100,000 in retirement](https://savingslast.com/how-long-will-100k-last-in-retirement/) - [$150,000 in retirement](https://savingslast.com/how-long-will-150k-last-in-retirement/) - [$200,000 in retirement](https://savingslast.com/how-long-will-200k-last-in-retirement/) - [$250,000 in retirement](https://savingslast.com/how-long-will-250k-last-in-retirement/) - [$300,000 in retirement](https://savingslast.com/how-long-will-300k-last-in-retirement/) - [$350,000 in retirement](https://savingslast.com/how-long-will-350k-last-in-retirement/) - [$400,000 in retirement](https://savingslast.com/how-long-will-400k-last-in-retirement/) - [$450,000 in retirement](https://savingslast.com/how-long-will-450k-last-in-retirement/) - [$500,000 in retirement](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [$600,000 in retirement](https://savingslast.com/how-long-will-600k-last-in-retirement/) - [$700,000 in retirement](https://savingslast.com/how-long-will-700k-last-in-retirement/) - [$750,000 in retirement](https://savingslast.com/how-long-will-750k-last-in-retirement/) - [$800,000 in retirement](https://savingslast.com/how-long-will-800k-last-in-retirement/) - [$1 Million in retirement](https://savingslast.com/how-long-will-1-million-last-in-retirement/) - [$1.2 Million in retirement](https://savingslast.com/how-long-will-1-2-million-last-in-retirement/) - [$1.5 Million in retirement](https://savingslast.com/how-long-will-1-5-million-last-in-retirement/) - [$2 Million in retirement](https://savingslast.com/how-long-will-2-million-last-in-retirement/) - [$2.5 Million in retirement](https://savingslast.com/how-long-will-2-5-million-last-in-retirement/) - [$3 Million in retirement](https://savingslast.com/how-long-will-3-million-last-in-retirement/) - [$4 Million in retirement](https://savingslast.com/how-long-will-4-million-last-in-retirement/) - [$5 Million in retirement](https://savingslast.com/how-long-will-5-million-last-in-retirement/) ## The rules behind these numbers - [What a hardship withdrawal leaves](https://savingslast.com/401k-hardship-withdrawal-what-you-keep/) - [Working during a 72(t)](https://savingslast.com/can-you-work-while-taking-a-72t/) - [What the 4% rule is](https://savingslast.com/what-is-the-4-percent-rule/) - [Safe withdrawal rate for 2026](https://savingslast.com/safe-withdrawal-rate-2026/) - [Withdrawal strategies compared](https://savingslast.com/retirement-withdrawal-strategies/) ## Related calculators - [IRA withdrawal calculator](https://savingslast.com/ira-withdrawal-calculator/) - [403(b) withdrawal calculator](https://savingslast.com/403b-calculator/) - [457(b) withdrawal calculator](https://savingslast.com/457b-calculator/) - [TSP withdrawal calculator](https://savingslast.com/tsp-withdrawal-calculator/) - [Investment calculator with withdrawals](https://savingslast.com/investment-calculator-with-withdrawals/) - [4% rule calculator](https://savingslast.com/4-percent-rule-calculator/) 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. --- # Retirement Taxes in Alabama (2025) > Does Alabama tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-alabama/ Markdown: https://savingslast.com/retirement-taxes-in-alabama.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, 2%–5%. Social Security: not taxed. Retirement account withdrawals: taxable, less a $6,000 exclusion at 65+. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-alabama/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 3.5% Alabama tax on retirement withdrawals. Change it to your own rate. ## What Alabama taxes in retirement | State income tax | Graduated, 2%–5% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, less a $6,000 exclusion at 65+ | | Pensions | Defined-benefit pensions are fully exempt | | Estate or inheritance tax | None | | Average combined sales tax | 9.29% | | Average effective property tax | 0.36% of home value | Alabama is unusual: a traditional company or government pension is completely untaxed, but money you saved yourself in a 401(k) or IRA is not. Retirees with an old-style pension do far better here than retirees with a big 401(k). ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Alabama's estimated 3.5% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Alabama charges an average combined sales tax of about **9.29%** and levies an average effective property tax of about **0.36%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Alabama tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Alabama tax 401(k) and IRA withdrawals?** Taxable, less a $6,000 exclusion at 65+. Pensions are treated separately — Defined-benefit pensions are fully exempt. **Is Alabama a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 9.29% and effective property tax about 0.36% of home value. Estate or inheritance tax: none. **Does Alabama have an estate or inheritance tax?** No. Alabama levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Alabama tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Alaska (2025) > Does Alaska tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-alaska/ Markdown: https://savingslast.com/retirement-taxes-in-alaska.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Alaska has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-alaska/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Alaska tax on retirement withdrawals. Change it to your own rate. ## What Alaska taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 1.82% | | Average effective property tax | 1.04% of home value | Alaska has no state income tax and no statewide sales tax, and residents receive an annual Permanent Fund Dividend. Property taxes and the cost of everything shipped north are what claw some of that back. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Alaska adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Alaska charges an average combined sales tax of about **1.82%** and levies an average effective property tax of about **1.04%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Alaska tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Alaska tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Alaska a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 1.82% and effective property tax about 1.04% of home value. Estate or inheritance tax: none. **Does Alaska have an estate or inheritance tax?** No. Alaska levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Alaska tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Arizona (2025) > Does Arizona tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-arizona/ Markdown: https://savingslast.com/retirement-taxes-in-arizona.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: flat 2.5%. Social Security: not taxed. Retirement account withdrawals: taxable at the flat rate. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-arizona/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 2.2% Arizona tax on retirement withdrawals. Change it to your own rate. ## What Arizona taxes in retirement | State income tax | Flat 2.5% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable at the flat rate | | Pensions | Taxable; up to $2,500 exempt for federal and Arizona government pensions | | Estate or inheritance tax | None | | Average combined sales tax | 8.38% | | Average effective property tax | 0.45% of home value | Arizona’s flat 2.5% is one of the lowest income tax rates in any state that has one, and Social Security is exempt outright. Low property taxes make it a genuinely cheap place to draw down a portfolio. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Arizona's estimated 2.2% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Arizona charges an average combined sales tax of about **8.38%** and levies an average effective property tax of about **0.45%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Arizona tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Arizona tax 401(k) and IRA withdrawals?** Taxable at the flat rate. Pensions are treated separately — Taxable; up to $2,500 exempt for federal and Arizona government pensions. **Is Arizona a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 2.2% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.38% and effective property tax about 0.45% of home value. Estate or inheritance tax: none. **Does Arizona have an estate or inheritance tax?** No. Arizona levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Arizona tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Arkansas (2025) > Does Arkansas tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-arkansas/ Markdown: https://savingslast.com/retirement-taxes-in-arkansas.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate 3.9%. Social Security: not taxed. Retirement account withdrawals: taxable, less the same $6,000 exemption. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-arkansas/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.5% Arkansas tax on retirement withdrawals. Change it to your own rate. ## What Arkansas taxes in retirement | State income tax | Graduated, top rate 3.9% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, less the same $6,000 exemption | | Pensions | Taxable, less a $6,000 exemption | | Estate or inheritance tax | None | | Average combined sales tax | 9.45% | | Average effective property tax | 0.53% of home value | Arkansas keeps cutting its top rate and exempts the first $6,000 of pension or retirement-account income. The offset is one of the highest combined sales tax rates in the country. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Arkansas's estimated 2.5% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Arkansas charges an average combined sales tax of about **9.45%** and levies an average effective property tax of about **0.53%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Arkansas tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Arkansas tax 401(k) and IRA withdrawals?** Taxable, less the same $6,000 exemption. Pensions are treated separately — Taxable, less a $6,000 exemption. **Is Arkansas a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 9.45% and effective property tax about 0.53% of home value. Estate or inheritance tax: none. **Does Arkansas have an estate or inheritance tax?** No. Arkansas levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Arkansas tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in California (2025) > Does California tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-california/ Markdown: https://savingslast.com/retirement-taxes-in-california.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 1%–13.3%. Social Security: not taxed. Retirement account withdrawals: fully taxable as ordinary income. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-california/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 1.5% California tax on retirement withdrawals. Change it to your own rate. ## What California taxes in retirement | State income tax | Graduated, 1%–13.3% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Fully taxable as ordinary income | | Pensions | Fully taxable | | Estate or inheritance tax | None | | Average combined sales tax | 8.85% | | Average effective property tax | 0.68% of home value | California’s reputation is worse than the arithmetic for most retirees. Social Security is exempt and the bottom brackets are shallow, so a moderate drawdown is taxed lightly — it is high earners and large Roth conversions that meet the famous top rate. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add California's estimated 1.5% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. California charges an average combined sales tax of about **8.85%** and levies an average effective property tax of about **0.68%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does California tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does California tax 401(k) and IRA withdrawals?** Fully taxable as ordinary income. Pensions are treated separately — Fully taxable. **Is California a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 1.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.85% and effective property tax about 0.68% of home value. Estate or inheritance tax: none. **Does California have an estate or inheritance tax?** No. California levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the California tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Colorado (2025) > Does Colorado tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-colorado/ Markdown: https://savingslast.com/retirement-taxes-in-colorado.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: flat 4.4%. Social Security: taxed, with a full deduction at 65+ and an income-tested deduction at 55–64. Retirement account withdrawals: same deduction applies. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-colorado/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 1.8% Colorado tax on retirement withdrawals. Change it to your own rate. ## What Colorado taxes in retirement | State income tax | Flat 4.4% | | --- | --- | | Social Security | Taxed, with a full deduction at 65+ and an income-tested deduction at 55–64 | | 401(k) and IRA withdrawals | Same deduction applies | | Pensions | Deduction of $24,000 at 65+, $20,000 at 55–64 | | Estate or inheritance tax | None | | Average combined sales tax | 7.81% | | Average effective property tax | 0.45% of home value | Colorado technically taxes Social Security, but the retirement-income deduction wipes it out for anyone 65 or older, and since 2025 for most people aged 55–64 as well. The $24,000 deduction covers a large share of a typical drawdown. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Colorado's estimated 1.8% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Colorado charges an average combined sales tax of about **7.81%** and levies an average effective property tax of about **0.45%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Colorado tax Social Security benefits?** Taxed, with a full deduction at 65+ and an income-tested deduction at 55–64. Colorado is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Colorado tax 401(k) and IRA withdrawals?** Same deduction applies. Pensions are treated separately — Deduction of $24,000 at 65+, $20,000 at 55–64. **Is Colorado a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 1.8% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.81% and effective property tax about 0.45% of home value. Estate or inheritance tax: none. **Does Colorado have an estate or inheritance tax?** No. Colorado levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Colorado tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Connecticut (2025) > Does Connecticut tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-connecticut/ Markdown: https://savingslast.com/retirement-taxes-in-connecticut.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 2%–6.99%. Social Security: taxed above $75,000 AGI (single) / $100,000 (joint); exempt below. Retirement account withdrawals: same exemption applies to IRA withdrawals. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-connecticut/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 11% — about 10% effective federal plus an estimated 0.5% Connecticut tax on retirement withdrawals. Change it to your own rate. ## What Connecticut taxes in retirement | State income tax | Graduated, 2%–6.99% | | --- | --- | | Social Security | Taxed above $75,000 AGI (single) / $100,000 (joint); exempt below | | 401(k) and IRA withdrawals | Same exemption applies to IRA withdrawals | | Pensions | Fully exempt below those same income thresholds | | Estate or inheritance tax | Estate tax, exemption matched to the federal amount; also the only state gift tax | | Average combined sales tax | 6.35% | | Average effective property tax | 1.78% of home value | Connecticut looks unfriendly and is not, below the income thresholds — a retiree under $75,000 of AGI pays essentially no state tax on retirement income. Above them the picture changes quickly, and property taxes are high throughout. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Connecticut's estimated 0.5% and it lasts about **18.5 years** — a difference of roughly **0.3 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Connecticut charges an average combined sales tax of about **6.35%** and levies an average effective property tax of about **1.78%** of a home's value, which is above the national average. On death: estate tax, exemption matched to the federal amount; also the only state gift tax. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Connecticut tax Social Security benefits?** Taxed above $75,000 AGI (single) / $100,000 (joint); exempt below. Connecticut is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Connecticut tax 401(k) and IRA withdrawals?** Same exemption applies to IRA withdrawals. Pensions are treated separately — Fully exempt below those same income thresholds. **Is Connecticut a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 0.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.35% and effective property tax about 1.78% of home value. Estate or inheritance tax: estate tax, exemption matched to the federal amount; also the only state gift tax. **Does Connecticut have an estate or inheritance tax?** Estate tax, exemption matched to the federal amount; also the only state gift tax. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Connecticut tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Delaware (2025) > Does Delaware tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-delaware/ Markdown: https://savingslast.com/retirement-taxes-in-delaware.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, 2.2%–6.6%. Social Security: not taxed. Retirement account withdrawals: same $12,500 exclusion applies. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-delaware/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.5% Delaware tax on retirement withdrawals. Change it to your own rate. ## What Delaware taxes in retirement | State income tax | Graduated, 2.2%–6.6% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Same $12,500 exclusion applies | | Pensions | Taxable, less a $12,500 exclusion at 60+ | | Estate or inheritance tax | None | | Average combined sales tax | 0% | | Average effective property tax | 0.48% of home value | No sales tax at all, low property taxes, and a $12,500 retirement-income exclusion from age 60. Delaware is one of the most consistently underrated retirement tax states in the country. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Delaware's estimated 2.5% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Delaware charges **no sales tax at all** and levies an average effective property tax of about **0.48%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Delaware tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Delaware tax 401(k) and IRA withdrawals?** Same $12,500 exclusion applies. Pensions are treated separately — Taxable, less a $12,500 exclusion at 60+. **Is Delaware a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. There is no sales tax and effective property tax about 0.48% of home value. Estate or inheritance tax: none. **Does Delaware have an estate or inheritance tax?** No. Delaware levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Delaware tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Florida (2025) > Does Florida tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-florida/ Markdown: https://savingslast.com/retirement-taxes-in-florida.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Florida has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-florida/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Florida tax on retirement withdrawals. Change it to your own rate. ## What Florida taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 7% | | Average effective property tax | 0.71% of home value | No income tax, no estate tax, and a homestead exemption plus an assessment cap that holds property tax growth down once you own. The costs that have risen fastest in Florida are insurance and housing, not taxes. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Florida adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Florida charges an average combined sales tax of about **7%** and levies an average effective property tax of about **0.71%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Florida tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Florida tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Florida a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 7% and effective property tax about 0.71% of home value. Estate or inheritance tax: none. **Does Florida have an estate or inheritance tax?** No. Florida levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Florida tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Georgia (2025) > Does Georgia tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-georgia/ Markdown: https://savingslast.com/retirement-taxes-in-georgia.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: flat rate, cut annually toward 4.99%. Social Security: not taxed. Retirement account withdrawals: covered by the same exclusion. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-georgia/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Georgia tax on retirement withdrawals. Change it to your own rate. ## What Georgia taxes in retirement | State income tax | Flat rate, cut annually toward 4.99% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Covered by the same exclusion | | Pensions | Retirement income exclusion of $35,000 at 62–64 and $65,000 at 65+, per person | | Estate or inheritance tax | None | | Average combined sales tax | 7.42% | | Average effective property tax | 0.72% of home value | Georgia’s $65,000-per-person retirement exclusion from age 65 means a married couple can shelter $130,000 a year of pension and withdrawal income. For most retirees that is a zero state tax bill on a flat-rate state. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Georgia adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Georgia charges an average combined sales tax of about **7.42%** and levies an average effective property tax of about **0.72%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Georgia tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Georgia tax 401(k) and IRA withdrawals?** Covered by the same exclusion. Pensions are treated separately — Retirement income exclusion of $35,000 at 62–64 and $65,000 at 65+, per person. **Is Georgia a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.42% and effective property tax about 0.72% of home value. Estate or inheritance tax: none. **Does Georgia have an estate or inheritance tax?** No. Georgia levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Georgia tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Hawaii (2025) > Does Hawaii tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-hawaii/ Markdown: https://savingslast.com/retirement-taxes-in-hawaii.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Less tax-friendly.** Income tax: graduated, 1.4%–11%. Social Security: not taxed. Retirement account withdrawals: your own 401(k) deferrals and IRA withdrawals are taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-hawaii/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 15% — about 10% effective federal plus an estimated 4.5% Hawaii tax on retirement withdrawals. Change it to your own rate. ## What Hawaii taxes in retirement | State income tax | Graduated, 1.4%–11% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Your own 401(k) deferrals and IRA withdrawals are taxable | | Pensions | Employer-funded pension income is exempt | | Estate or inheritance tax | Estate tax | | Average combined sales tax | 4.5% | | Average effective property tax | 0.26% of home value | Hawaii splits retirement income precisely down the middle: the part your employer funded is exempt, the part you funded is not. Property taxes are the lowest in the nation, which softens the highest cost of living in the nation. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Hawaii's estimated 4.5% and it lasts about **17.4 years** — a difference of roughly **1.4 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Hawaii charges an average combined sales tax of about **4.5%** and levies an average effective property tax of about **0.26%** of a home's value, which is well below the national average. On death: estate tax. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Hawaii tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Hawaii tax 401(k) and IRA withdrawals?** Your own 401(k) deferrals and IRA withdrawals are taxable. Pensions are treated separately — Employer-funded pension income is exempt. **Is Hawaii a good state to retire in for taxes?** Less tax-friendly on income tax. We estimate roughly 4.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 4.5% and effective property tax about 0.26% of home value. Estate or inheritance tax: estate tax. **Does Hawaii have an estate or inheritance tax?** Estate tax. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Hawaii tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Idaho (2025) > Does Idaho tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-idaho/ Markdown: https://savingslast.com/retirement-taxes-in-idaho.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: flat rate, recently cut to around 5.3%. Social Security: not taxed. Retirement account withdrawals: fully taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-idaho/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 4% Idaho tax on retirement withdrawals. Change it to your own rate. ## What Idaho taxes in retirement | State income tax | Flat rate, recently cut to around 5.3% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Fully taxable | | Pensions | Taxable; a deduction exists for certain police, fire and federal pensions at 65+ | | Estate or inheritance tax | None | | Average combined sales tax | 6.03% | | Average effective property tax | 0.47% of home value | Idaho exempts Social Security and taxes everything else at a single flat rate with no general retirement exclusion. Low property taxes and a low sales tax keep the overall burden moderate. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Idaho's estimated 4% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Idaho charges an average combined sales tax of about **6.03%** and levies an average effective property tax of about **0.47%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Idaho tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Idaho tax 401(k) and IRA withdrawals?** Fully taxable. Pensions are treated separately — Taxable; a deduction exists for certain police, fire and federal pensions at 65+. **Is Idaho a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.03% and effective property tax about 0.47% of home value. Estate or inheritance tax: none. **Does Idaho have an estate or inheritance tax?** No. Idaho levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Idaho tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Illinois (2025) > Does Illinois tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-illinois/ Markdown: https://savingslast.com/retirement-taxes-in-illinois.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: flat 4.95% — but not on retirement income. Social Security: not taxed. Retirement account withdrawals: not taxed — 401(k) and IRA withdrawals are fully exempt. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-illinois/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Illinois tax on retirement withdrawals. Change it to your own rate. ## What Illinois taxes in retirement | State income tax | Flat 4.95% — but not on retirement income | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed — 401(k) and IRA withdrawals are fully exempt | | Pensions | Not taxed | | Estate or inheritance tax | Estate tax, $4 million exemption | | Average combined sales tax | 8.86% | | Average effective property tax | 1.95% of home value | Illinois exempts retirement income completely — Social Security, pensions, 401(k) and IRA withdrawals all escape the state income tax. It then takes it back through some of the highest property taxes in America and a $4 million estate tax exemption. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Illinois adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Illinois charges an average combined sales tax of about **8.86%** and levies an average effective property tax of about **1.95%** of a home's value, which is above the national average. On death: estate tax, $4 million exemption. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Illinois tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Illinois tax 401(k) and IRA withdrawals?** Not taxed — 401(k) and IRA withdrawals are fully exempt. Pensions are treated separately — Not taxed. **Is Illinois a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.86% and effective property tax about 1.95% of home value. Estate or inheritance tax: estate tax, $4 million exemption. **Does Illinois have an estate or inheritance tax?** Estate tax, $4 million exemption. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Illinois tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Indiana (2025) > Does Indiana tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-indiana/ Markdown: https://savingslast.com/retirement-taxes-in-indiana.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: flat state rate near 3%, plus a county income tax. Social Security: not taxed. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-indiana/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 4% Indiana tax on retirement withdrawals. Change it to your own rate. ## What Indiana taxes in retirement | State income tax | Flat state rate near 3%, plus a county income tax | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable | | Pensions | Taxable | | Estate or inheritance tax | None | | Average combined sales tax | 7% | | Average effective property tax | 0.71% of home value | The headline state rate is one of the lowest in the country, but every Indiana county adds its own income tax on top, which roughly doubles the real rate. Check your specific county before assuming the flat rate is what you pay. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Indiana's estimated 4% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Indiana charges an average combined sales tax of about **7%** and levies an average effective property tax of about **0.71%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Indiana tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Indiana tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Taxable. **Is Indiana a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7% and effective property tax about 0.71% of home value. Estate or inheritance tax: none. **Does Indiana have an estate or inheritance tax?** No. Indiana levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Indiana tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Iowa (2025) > Does Iowa tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-iowa/ Markdown: https://savingslast.com/retirement-taxes-in-iowa.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: flat 3.8%, but retirement income is exempt. Social Security: not taxed. Retirement account withdrawals: exempt from age 55 — 401(k) and IRA withdrawals included. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-iowa/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Iowa tax on retirement withdrawals. Change it to your own rate. ## What Iowa taxes in retirement | State income tax | Flat 3.8%, but retirement income is exempt | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Exempt from age 55 — 401(k) and IRA withdrawals included | | Pensions | Exempt from age 55 | | Estate or inheritance tax | None — the inheritance tax was fully repealed for deaths from 1 January 2025 | | Average combined sales tax | 6.94% | | Average effective property tax | 1.4% of home value | Iowa went from one of the least retiree-friendly tax states to one of the most in a single reform: retirement income is exempt from 55, and the inheritance tax is now gone entirely. Property taxes remain the weak spot. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Iowa adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Iowa charges an average combined sales tax of about **6.94%** and levies an average effective property tax of about **1.4%** of a home's value, which is above the national average. There is no state estate or inheritance tax — the inheritance tax was fully repealed for deaths from 1 January 2025, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Iowa tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Iowa tax 401(k) and IRA withdrawals?** Exempt from age 55 — 401(k) and IRA withdrawals included. Pensions are treated separately — Exempt from age 55. **Is Iowa a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.94% and effective property tax about 1.4% of home value. Estate or inheritance tax: none. **Does Iowa have an estate or inheritance tax?** No. Iowa levies neither an estate tax nor an inheritance tax — the inheritance tax was fully repealed for deaths from 1 January 2025, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Iowa tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Kansas (2025) > Does Kansas tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-kansas/ Markdown: https://savingslast.com/retirement-taxes-in-kansas.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: two brackets, roughly 5.2% and 5.6%. Social Security: not taxed — the income cap was removed in 2024. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-kansas/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 4% Kansas tax on retirement withdrawals. Change it to your own rate. ## What Kansas taxes in retirement | State income tax | Two brackets, roughly 5.2% and 5.6% | | --- | --- | | Social Security | Not taxed — the income cap was removed in 2024 | | 401(k) and IRA withdrawals | Taxable | | Pensions | Public pensions (KPERS, federal, military) exempt; private pensions taxable | | Estate or inheritance tax | None | | Average combined sales tax | 8.65% | | Average effective property tax | 1.26% of home value | Kansas removed the cliff that used to tax a retiree’s entire Social Security benefit once income crossed $75,000. Public-sector pensions are exempt; private savings are not. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Kansas's estimated 4% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Kansas charges an average combined sales tax of about **8.65%** and levies an average effective property tax of about **1.26%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Kansas tax Social Security benefits?** Not taxed — the income cap was removed in 2024. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Kansas tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Public pensions (KPERS, federal, military) exempt; private pensions taxable. **Is Kansas a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.65% and effective property tax about 1.26% of home value. Estate or inheritance tax: none. **Does Kansas have an estate or inheritance tax?** No. Kansas levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Kansas tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Kentucky (2025) > Does Kentucky tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-kentucky/ Markdown: https://savingslast.com/retirement-taxes-in-kentucky.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: flat rate, cut in steps toward 3.5%. Social Security: not taxed. Retirement account withdrawals: covered by the same $31,110 exclusion. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-kentucky/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 11% — about 10% effective federal plus an estimated 0.9% Kentucky tax on retirement withdrawals. Change it to your own rate. ## What Kentucky taxes in retirement | State income tax | Flat rate, cut in steps toward 3.5% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Covered by the same $31,110 exclusion | | Pensions | Exclusion of up to $31,110 per person | | Estate or inheritance tax | Inheritance tax — spouses, children and parents are exempt; other heirs are not | | Average combined sales tax | 6% | | Average effective property tax | 0.74% of home value | A $31,110-per-person exclusion on a falling flat rate means many Kentucky retirees owe little or no state income tax. The catch is at the end: an inheritance tax that spares immediate family but hits siblings, nieces, nephews and friends. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Kentucky's estimated 0.9% and it lasts about **18.5 years** — a difference of roughly **0.3 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Kentucky charges an average combined sales tax of about **6%** and levies an average effective property tax of about **0.74%** of a home's value, which is close to the national average. On death: inheritance tax — spouses, children and parents are exempt; other heirs are not. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Kentucky tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Kentucky tax 401(k) and IRA withdrawals?** Covered by the same $31,110 exclusion. Pensions are treated separately — Exclusion of up to $31,110 per person. **Is Kentucky a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 0.9% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6% and effective property tax about 0.74% of home value. Estate or inheritance tax: inheritance tax — spouses, children and parents are exempt; other heirs are not. **Does Kentucky have an estate or inheritance tax?** Inheritance tax — spouses, children and parents are exempt; other heirs are not. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Kentucky tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Louisiana (2025) > Does Louisiana tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-louisiana/ Markdown: https://savingslast.com/retirement-taxes-in-louisiana.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: flat 3% from 2025. Social Security: not taxed. Retirement account withdrawals: taxable, less a $6,000 exclusion at 65+. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-louisiana/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.5% Louisiana tax on retirement withdrawals. Change it to your own rate. ## What Louisiana taxes in retirement | State income tax | Flat 3% from 2025 | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, less a $6,000 exclusion at 65+ | | Pensions | Federal, state and local government pensions fully exempt | | Estate or inheritance tax | None | | Average combined sales tax | 9.56% | | Average effective property tax | 0.51% of home value | Louisiana replaced its graduated brackets with a flat 3% and has the lowest property taxes in the country. It also has the highest combined sales tax, so the burden lands on spending rather than on the portfolio. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Louisiana's estimated 2.5% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Louisiana charges an average combined sales tax of about **9.56%** and levies an average effective property tax of about **0.51%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Louisiana tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Louisiana tax 401(k) and IRA withdrawals?** Taxable, less a $6,000 exclusion at 65+. Pensions are treated separately — Federal, state and local government pensions fully exempt. **Is Louisiana a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 9.56% and effective property tax about 0.51% of home value. Estate or inheritance tax: none. **Does Louisiana have an estate or inheritance tax?** No. Louisiana levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Louisiana tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Maine (2025) > Does Maine tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-maine/ Markdown: https://savingslast.com/retirement-taxes-in-maine.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 5.8%–7.15%. Social Security: not taxed. Retirement account withdrawals: eligible retirement-account income counts toward the same deduction. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-maine/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 11% — about 10% effective federal plus an estimated 0.5% Maine tax on retirement withdrawals. Change it to your own rate. ## What Maine taxes in retirement | State income tax | Graduated, 5.8%–7.15% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Eligible retirement-account income counts toward the same deduction | | Pensions | Deduction of roughly $45,000 per person, reduced by Social Security received | | Estate or inheritance tax | Estate tax, around a $7 million exemption | | Average combined sales tax | 5.5% | | Average effective property tax | 1.09% of home value | Maine’s pension deduction is large enough to cover most retirees’ entire withdrawal, but it is reduced dollar-for-dollar by Social Security, so the two do not stack. Above the deduction the rates are steep. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Maine's estimated 0.5% and it lasts about **18.5 years** — a difference of roughly **0.3 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Maine charges an average combined sales tax of about **5.5%** and levies an average effective property tax of about **1.09%** of a home's value, which is close to the national average. On death: estate tax, around a $7 million exemption. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Maine tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Maine tax 401(k) and IRA withdrawals?** Eligible retirement-account income counts toward the same deduction. Pensions are treated separately — Deduction of roughly $45,000 per person, reduced by Social Security received. **Is Maine a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 0.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 5.5% and effective property tax about 1.09% of home value. Estate or inheritance tax: estate tax, around a $7 million exemption. **Does Maine have an estate or inheritance tax?** Estate tax, around a $7 million exemption. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Maine tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Maryland (2025) > Does Maryland tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-maryland/ Markdown: https://savingslast.com/retirement-taxes-in-maryland.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated 2%–5.75%, plus a county income tax up to about 3.2%. Social Security: not taxed. Retirement account withdrawals: iRA withdrawals generally do not qualify for the pension exclusion. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-maryland/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 3.5% Maryland tax on retirement withdrawals. Change it to your own rate. ## What Maryland taxes in retirement | State income tax | Graduated 2%–5.75%, plus a county income tax up to about 3.2% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | IRA withdrawals generally do not qualify for the pension exclusion | | Pensions | Pension exclusion of roughly $39,500 at 65+ or if disabled | | Estate or inheritance tax | Both an estate tax ($5 million exemption) and an inheritance tax — the only state with both | | Average combined sales tax | 6% | | Average effective property tax | 0.95% of home value | Maryland is the only state that levies both an estate tax and an inheritance tax. The generous pension exclusion is aimed at traditional pensions; IRA withdrawals largely miss it, which surprises people who rolled a 401(k) over. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Maryland's estimated 3.5% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Maryland charges an average combined sales tax of about **6%** and levies an average effective property tax of about **0.95%** of a home's value, which is close to the national average. On death: both an estate tax ($5 million exemption) and an inheritance tax — the only state with both. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Maryland tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Maryland tax 401(k) and IRA withdrawals?** IRA withdrawals generally do not qualify for the pension exclusion. Pensions are treated separately — Pension exclusion of roughly $39,500 at 65+ or if disabled. **Is Maryland a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6% and effective property tax about 0.95% of home value. Estate or inheritance tax: both an estate tax ($5 million exemption) and an inheritance tax — the only state with both. **Does Maryland have an estate or inheritance tax?** Both an estate tax ($5 million exemption) and an inheritance tax — the only state with both. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Maryland tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Massachusetts (2025) > Does Massachusetts tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-massachusetts/ Markdown: https://savingslast.com/retirement-taxes-in-massachusetts.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Less tax-friendly.** Income tax: flat 5%, plus a 4% surtax on income above about $1 million. Social Security: not taxed. Retirement account withdrawals: 401(k) and IRA withdrawals are fully taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-massachusetts/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 15% — about 10% effective federal plus an estimated 4.5% Massachusetts tax on retirement withdrawals. Change it to your own rate. ## What Massachusetts taxes in retirement | State income tax | Flat 5%, plus a 4% surtax on income above about $1 million | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | 401(k) and IRA withdrawals are fully taxable | | Pensions | Massachusetts and federal government pensions are exempt | | Estate or inheritance tax | Estate tax, $2 million exemption | | Average combined sales tax | 6.25% | | Average effective property tax | 1.04% of home value | The flat 5% is manageable; the two things to plan around are the $2 million estate tax threshold, which a house plus a portfolio can quietly cross, and the 4% surtax that a single large Roth conversion or property sale can trigger. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Massachusetts's estimated 4.5% and it lasts about **17.4 years** — a difference of roughly **1.4 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Massachusetts charges an average combined sales tax of about **6.25%** and levies an average effective property tax of about **1.04%** of a home's value, which is close to the national average. On death: estate tax, $2 million exemption. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Massachusetts tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Massachusetts tax 401(k) and IRA withdrawals?** 401(k) and IRA withdrawals are fully taxable. Pensions are treated separately — Massachusetts and federal government pensions are exempt. **Is Massachusetts a good state to retire in for taxes?** Less tax-friendly on income tax. We estimate roughly 4.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.25% and effective property tax about 1.04% of home value. Estate or inheritance tax: estate tax, $2 million exemption. **Does Massachusetts have an estate or inheritance tax?** Estate tax, $2 million exemption. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Massachusetts tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Michigan (2025) > Does Michigan tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-michigan/ Markdown: https://savingslast.com/retirement-taxes-in-michigan.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: flat 4.25%. Social Security: not taxed. Retirement account withdrawals: covered by the same phased-in deduction. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-michigan/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 11% — about 10% effective federal plus an estimated 1% Michigan tax on retirement withdrawals. Change it to your own rate. ## What Michigan taxes in retirement | State income tax | Flat 4.25% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Covered by the same phased-in deduction | | Pensions | The 2011 "pension tax" is being repealed in stages, fully restored by 2026 | | Estate or inheritance tax | None | | Average combined sales tax | 6% | | Average effective property tax | 1.24% of home value | Michigan spent a decade taxing pensions and is now unwinding it. By the 2026 tax year every retiree can choose the pre-2012 treatment, which exempts a large slice of pension and retirement-account income. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Michigan's estimated 1% and it lasts about **18.5 years** — a difference of roughly **0.3 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Michigan charges an average combined sales tax of about **6%** and levies an average effective property tax of about **1.24%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Michigan tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Michigan tax 401(k) and IRA withdrawals?** Covered by the same phased-in deduction. Pensions are treated separately — The 2011 "pension tax" is being repealed in stages, fully restored by 2026. **Is Michigan a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 1% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6% and effective property tax about 1.24% of home value. Estate or inheritance tax: none. **Does Michigan have an estate or inheritance tax?** No. Michigan levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Michigan tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Minnesota (2025) > Does Minnesota tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-minnesota/ Markdown: https://savingslast.com/retirement-taxes-in-minnesota.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Less tax-friendly.** Income tax: graduated, 5.35%–9.85%. Social Security: taxed, with a subtraction that is full below roughly $78,000 AGI (single) / $100,000 (joint) and phases out above. Retirement account withdrawals: fully taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-minnesota/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 15% — about 10% effective federal plus an estimated 4.5% Minnesota tax on retirement withdrawals. Change it to your own rate. ## What Minnesota taxes in retirement | State income tax | Graduated, 5.35%–9.85% | | --- | --- | | Social Security | Taxed, with a subtraction that is full below roughly $78,000 AGI (single) / $100,000 (joint) and phases out above | | 401(k) and IRA withdrawals | Fully taxable | | Pensions | Fully taxable | | Estate or inheritance tax | Estate tax, $3 million exemption | | Average combined sales tax | 8.04% | | Average effective property tax | 0.98% of home value | Minnesota is one of the few states still taxing Social Security, and its lowest bracket — 5.35% — is higher than several states’ top rate. The estate tax threshold of $3 million is low enough to matter for ordinary homeowners with a portfolio. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Minnesota's estimated 4.5% and it lasts about **17.4 years** — a difference of roughly **1.4 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Minnesota charges an average combined sales tax of about **8.04%** and levies an average effective property tax of about **0.98%** of a home's value, which is close to the national average. On death: estate tax, $3 million exemption. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Minnesota tax Social Security benefits?** Taxed, with a subtraction that is full below roughly $78,000 AGI (single) / $100,000 (joint) and phases out above. Minnesota is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Minnesota tax 401(k) and IRA withdrawals?** Fully taxable. Pensions are treated separately — Fully taxable. **Is Minnesota a good state to retire in for taxes?** Less tax-friendly on income tax. We estimate roughly 4.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.04% and effective property tax about 0.98% of home value. Estate or inheritance tax: estate tax, $3 million exemption. **Does Minnesota have an estate or inheritance tax?** Estate tax, $3 million exemption. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Minnesota tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Mississippi (2025) > Does Mississippi tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-mississippi/ Markdown: https://savingslast.com/retirement-taxes-in-mississippi.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: flat rate falling toward 3%, but retirement income is exempt. Social Security: not taxed. Retirement account withdrawals: not taxed when taken as qualified retirement distributions. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-mississippi/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Mississippi tax on retirement withdrawals. Change it to your own rate. ## What Mississippi taxes in retirement | State income tax | Flat rate falling toward 3%, but retirement income is exempt | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed when taken as qualified retirement distributions | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 7.06% | | Average effective property tax | 0.52% of home value | Mississippi exempts qualified retirement income entirely — Social Security, pensions, 401(k) and IRA withdrawals — while its remaining flat rate keeps falling. On paper it is one of the cheapest states in the country to draw down a portfolio. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Mississippi adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Mississippi charges an average combined sales tax of about **7.06%** and levies an average effective property tax of about **0.52%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Mississippi tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Mississippi tax 401(k) and IRA withdrawals?** Not taxed when taken as qualified retirement distributions. Pensions are treated separately — Not taxed. **Is Mississippi a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.06% and effective property tax about 0.52% of home value. Estate or inheritance tax: none. **Does Mississippi have an estate or inheritance tax?** No. Mississippi levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Mississippi tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Missouri (2025) > Does Missouri tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-missouri/ Markdown: https://savingslast.com/retirement-taxes-in-missouri.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate about 4.7%. Social Security: not taxed — the income limits were removed in 2024. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-missouri/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 3% Missouri tax on retirement withdrawals. Change it to your own rate. ## What Missouri taxes in retirement | State income tax | Graduated, top rate about 4.7% | | --- | --- | | Social Security | Not taxed — the income limits were removed in 2024 | | 401(k) and IRA withdrawals | Taxable | | Pensions | Public pension exemption; private pension exemption up to $6,000, income-tested | | Estate or inheritance tax | None | | Average combined sales tax | 8.39% | | Average effective property tax | 0.82% of home value | Missouri fully exempted Social Security in 2024 regardless of income. Public-sector retirees do well; private-sector retirees living on 401(k) withdrawals get much less relief. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Missouri's estimated 3% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Missouri charges an average combined sales tax of about **8.39%** and levies an average effective property tax of about **0.82%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Missouri tax Social Security benefits?** Not taxed — the income limits were removed in 2024. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Missouri tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Public pension exemption; private pension exemption up to $6,000, income-tested. **Is Missouri a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.39% and effective property tax about 0.82% of home value. Estate or inheritance tax: none. **Does Missouri have an estate or inheritance tax?** No. Missouri levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Missouri tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Montana (2025) > Does Montana tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-montana/ Markdown: https://savingslast.com/retirement-taxes-in-montana.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: two brackets, 4.7% and 5.9%. Social Security: taxed, following the federal calculation. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-montana/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 4% Montana tax on retirement withdrawals. Change it to your own rate. ## What Montana taxes in retirement | State income tax | Two brackets, 4.7% and 5.9% | | --- | --- | | Social Security | Taxed, following the federal calculation | | 401(k) and IRA withdrawals | Taxable | | Pensions | Taxable; the old pension exemption was replaced by a larger standard deduction at 65+ | | Estate or inheritance tax | None | | Average combined sales tax | 0% | | Average effective property tax | 0.69% of home value | Montana is one of the last states taxing Social Security on the federal formula, and it removed its pension exemption in the 2024 reform. The compensation is no sales tax at all. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Montana's estimated 4% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Montana charges **no sales tax at all** and levies an average effective property tax of about **0.69%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Montana tax Social Security benefits?** Taxed, following the federal calculation. Montana is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Montana tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Taxable; the old pension exemption was replaced by a larger standard deduction at 65+. **Is Montana a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. There is no sales tax and effective property tax about 0.69% of home value. Estate or inheritance tax: none. **Does Montana have an estate or inheritance tax?** No. Montana levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Montana tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Nebraska (2025) > Does Nebraska tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-nebraska/ Markdown: https://savingslast.com/retirement-taxes-in-nebraska.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate cut in steps toward 3.99%. Social Security: not taxed — fully exempt from 2024. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-nebraska/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 3.5% Nebraska tax on retirement withdrawals. Change it to your own rate. ## What Nebraska taxes in retirement | State income tax | Graduated, top rate cut in steps toward 3.99% | | --- | --- | | Social Security | Not taxed — fully exempt from 2024 | | 401(k) and IRA withdrawals | Taxable | | Pensions | Taxable | | Estate or inheritance tax | County-level inheritance tax; spouses exempt and close relatives pay a reduced rate | | Average combined sales tax | 6.97% | | Average effective property tax | 1.44% of home value | Nebraska accelerated its Social Security exemption to 2024 and is cutting its top rate every year. The county inheritance tax is unusual and worth planning around; property taxes are high. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Nebraska's estimated 3.5% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Nebraska charges an average combined sales tax of about **6.97%** and levies an average effective property tax of about **1.44%** of a home's value, which is above the national average. On death: county-level inheritance tax; spouses exempt and close relatives pay a reduced rate. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Nebraska tax Social Security benefits?** Not taxed — fully exempt from 2024. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Nebraska tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Taxable. **Is Nebraska a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.97% and effective property tax about 1.44% of home value. Estate or inheritance tax: county-level inheritance tax; spouses exempt and close relatives pay a reduced rate. **Does Nebraska have an estate or inheritance tax?** County-level inheritance tax; spouses exempt and close relatives pay a reduced rate. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Nebraska tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Nevada (2025) > Does Nevada tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-nevada/ Markdown: https://savingslast.com/retirement-taxes-in-nevada.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Nevada has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-nevada/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Nevada tax on retirement withdrawals. Change it to your own rate. ## What Nevada taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 8.24% | | Average effective property tax | 0.44% of home value | No income tax and low property taxes, funded largely by gaming and tourism revenue. Sales tax is the main levy a retiree actually feels. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Nevada adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Nevada charges an average combined sales tax of about **8.24%** and levies an average effective property tax of about **0.44%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Nevada tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Nevada tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Nevada a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 8.24% and effective property tax about 0.44% of home value. Estate or inheritance tax: none. **Does Nevada have an estate or inheritance tax?** No. Nevada levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Nevada tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in New Hampshire (2025) > Does New Hampshire tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-new-hampshire/ Markdown: https://savingslast.com/retirement-taxes-in-new-hampshire.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** New Hampshire has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-new-hampshire/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% New Hampshire tax on retirement withdrawals. Change it to your own rate. ## What New Hampshire taxes in retirement | State income tax | None — the interest and dividends tax was repealed from 2025 | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 0% | | Average effective property tax | 1.61% of home value | From 2025 New Hampshire taxes no income at all, having repealed the interest-and-dividends tax that used to catch retirees living on a portfolio. There is no sales tax either — the entire burden sits in property tax, which is among the highest in the country. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and New Hampshire adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. New Hampshire charges **no sales tax at all** and levies an average effective property tax of about **1.61%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does New Hampshire tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does New Hampshire tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is New Hampshire a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. There is no sales tax and effective property tax about 1.61% of home value. Estate or inheritance tax: none. **Does New Hampshire have an estate or inheritance tax?** No. New Hampshire levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the New Hampshire tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in New Jersey (2025) > Does New Jersey tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-new-jersey/ Markdown: https://savingslast.com/retirement-taxes-in-new-jersey.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: graduated, 1.4%–10.75%. Social Security: not taxed. Retirement account withdrawals: covered by the same exclusion. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-new-jersey/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% New Jersey tax on retirement withdrawals. Change it to your own rate. ## What New Jersey taxes in retirement | State income tax | Graduated, 1.4%–10.75% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Covered by the same exclusion | | Pensions | Retirement income exclusion up to $100,000 for those 62+ with gross income at or below $150,000 | | Estate or inheritance tax | Inheritance tax — spouses, children and grandchildren exempt; the estate tax was repealed in 2018 | | Average combined sales tax | 6.6% | | Average effective property tax | 2.23% of home value | New Jersey’s $100,000 retirement exclusion is one of the largest anywhere, and it makes the state genuinely tax-friendly for retirees under the income threshold. Then the property tax arrives — the highest effective rate in the United States. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and New Jersey adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. New Jersey charges an average combined sales tax of about **6.6%** and levies an average effective property tax of about **2.23%** of a home's value, which is above the national average. On death: inheritance tax — spouses, children and grandchildren exempt; the estate tax was repealed in 2018. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does New Jersey tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does New Jersey tax 401(k) and IRA withdrawals?** Covered by the same exclusion. Pensions are treated separately — Retirement income exclusion up to $100,000 for those 62+ with gross income at or below $150,000. **Is New Jersey a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.6% and effective property tax about 2.23% of home value. Estate or inheritance tax: inheritance tax — spouses, children and grandchildren exempt; the estate tax was repealed in 2018. **Does New Jersey have an estate or inheritance tax?** Inheritance tax — spouses, children and grandchildren exempt; the estate tax was repealed in 2018. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the New Jersey tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in New Mexico (2025) > Does New Mexico tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-new-mexico/ Markdown: https://savingslast.com/retirement-taxes-in-new-mexico.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 1.7%–5.9%. Social Security: taxed, but exempt below $100,000 AGI (single) / $150,000 (joint). Retirement account withdrawals: same $8,000 deduction applies. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-new-mexico/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 2% New Mexico tax on retirement withdrawals. Change it to your own rate. ## What New Mexico taxes in retirement | State income tax | Graduated, 1.7%–5.9% | | --- | --- | | Social Security | Taxed, but exempt below $100,000 AGI (single) / $150,000 (joint) | | 401(k) and IRA withdrawals | Same $8,000 deduction applies | | Pensions | Taxable, less an $8,000 deduction at 65+ | | Estate or inheritance tax | None | | Average combined sales tax | 7.62% | | Average effective property tax | 0.67% of home value | New Mexico still has Social Security on the books but exempted it below $100,000 of income in 2022, which covers the large majority of retirees. Low property taxes; a broad gross receipts tax instead of a conventional sales tax. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add New Mexico's estimated 2% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. New Mexico charges an average combined sales tax of about **7.62%** and levies an average effective property tax of about **0.67%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does New Mexico tax Social Security benefits?** Taxed, but exempt below $100,000 AGI (single) / $150,000 (joint). New Mexico is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does New Mexico tax 401(k) and IRA withdrawals?** Same $8,000 deduction applies. Pensions are treated separately — Taxable, less an $8,000 deduction at 65+. **Is New Mexico a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 2% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.62% and effective property tax about 0.67% of home value. Estate or inheritance tax: none. **Does New Mexico have an estate or inheritance tax?** No. New Mexico levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the New Mexico tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in New York (2025) > Does New York tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-new-york/ Markdown: https://savingslast.com/retirement-taxes-in-new-york.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 4%–10.9%, plus a New York City tax for city residents. Social Security: not taxed. Retirement account withdrawals: private retirement income exclusion of $20,000 per person from age 59½. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-new-york/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 2.3% New York tax on retirement withdrawals. Change it to your own rate. ## What New York taxes in retirement | State income tax | Graduated, 4%–10.9%, plus a New York City tax for city residents | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Private retirement income exclusion of $20,000 per person from age 59½ | | Pensions | New York state, local and federal government pensions are fully exempt | | Estate or inheritance tax | Estate tax with a "cliff": exceed the exemption by more than 5% and the whole estate is taxed | | Average combined sales tax | 8.53% | | Average effective property tax | 1.4% of home value | New York treats public and private retirees very differently — a state pension is fully exempt, a 401(k) gets $20,000. The estate tax cliff is the trap: going slightly over the threshold taxes the entire estate, not just the excess. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add New York's estimated 2.3% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. New York charges an average combined sales tax of about **8.53%** and levies an average effective property tax of about **1.4%** of a home's value, which is above the national average. On death: estate tax with a "cliff": exceed the exemption by more than 5% and the whole estate is taxed. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does New York tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does New York tax 401(k) and IRA withdrawals?** Private retirement income exclusion of $20,000 per person from age 59½. Pensions are treated separately — New York state, local and federal government pensions are fully exempt. **Is New York a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 2.3% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.53% and effective property tax about 1.4% of home value. Estate or inheritance tax: estate tax with a "cliff": exceed the exemption by more than 5% and the whole estate is taxed. **Does New York have an estate or inheritance tax?** Estate tax with a "cliff": exceed the exemption by more than 5% and the whole estate is taxed. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the New York tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in North Carolina (2025) > Does North Carolina tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-north-carolina/ Markdown: https://savingslast.com/retirement-taxes-in-north-carolina.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: flat rate, cut annually toward 3.99%. Social Security: not taxed. Retirement account withdrawals: taxable at the flat rate. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-north-carolina/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 3.6% North Carolina tax on retirement withdrawals. Change it to your own rate. ## What North Carolina taxes in retirement | State income tax | Flat rate, cut annually toward 3.99% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable at the flat rate | | Pensions | Taxable, except certain long-vested government pensions protected by the Bailey settlement | | Estate or inheritance tax | None | | Average combined sales tax | 7% | | Average effective property tax | 0.63% of home value | A single falling flat rate, no estate tax and low property taxes make North Carolina simple and moderately priced. There is no general retirement-income exclusion, so the flat rate is what you pay on every withdrawal. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add North Carolina's estimated 3.6% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. North Carolina charges an average combined sales tax of about **7%** and levies an average effective property tax of about **0.63%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does North Carolina tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does North Carolina tax 401(k) and IRA withdrawals?** Taxable at the flat rate. Pensions are treated separately — Taxable, except certain long-vested government pensions protected by the Bailey settlement. **Is North Carolina a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.6% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7% and effective property tax about 0.63% of home value. Estate or inheritance tax: none. **Does North Carolina have an estate or inheritance tax?** No. North Carolina levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the North Carolina tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in North Dakota (2025) > Does North Dakota tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-north-dakota/ Markdown: https://savingslast.com/retirement-taxes-in-north-dakota.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: graduated, with a 0% bracket covering most retirement income. Social Security: not taxed. Retirement account withdrawals: taxable, but the first bracket is 0%. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-north-dakota/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% North Dakota tax on retirement withdrawals. Change it to your own rate. ## What North Dakota taxes in retirement | State income tax | Graduated, with a 0% bracket covering most retirement income | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, but the first bracket is 0% | | Pensions | Taxable, but the first bracket is 0% | | Estate or inheritance tax | None | | Average combined sales tax | 7.04% | | Average effective property tax | 0.88% of home value | North Dakota’s 2023 reform put a genuine 0% bracket at the bottom and capped the top at 2.5%. A typical retiree drawing a moderate income from savings owes no state income tax at all. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and North Dakota adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. North Dakota charges an average combined sales tax of about **7.04%** and levies an average effective property tax of about **0.88%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does North Dakota tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does North Dakota tax 401(k) and IRA withdrawals?** Taxable, but the first bracket is 0%. Pensions are treated separately — Taxable, but the first bracket is 0%. **Is North Dakota a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.04% and effective property tax about 0.88% of home value. Estate or inheritance tax: none. **Does North Dakota have an estate or inheritance tax?** No. North Dakota levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the North Dakota tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Ohio (2025) > Does Ohio tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-ohio/ Markdown: https://savingslast.com/retirement-taxes-in-ohio.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 0% on the first band and a top rate of about 3.5%. Social Security: not taxed. Retirement account withdrawals: taxable, with the same small credit. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-ohio/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 12% — about 10% effective federal plus an estimated 1.5% Ohio tax on retirement withdrawals. Change it to your own rate. ## What Ohio taxes in retirement | State income tax | Graduated, 0% on the first band and a top rate of about 3.5% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, with the same small credit | | Pensions | Taxable, with a small retirement income credit | | Estate or inheritance tax | None | | Average combined sales tax | 7.24% | | Average effective property tax | 1.3% of home value | Ohio’s zero bracket covers a meaningful slice of retirement income and its top rate is now among the lowest graduated rates in the country. Municipal income taxes generally do not reach retirement income. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Ohio's estimated 1.5% and it lasts about **18.2 years** — a difference of roughly **0.6 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Ohio charges an average combined sales tax of about **7.24%** and levies an average effective property tax of about **1.3%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Ohio tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Ohio tax 401(k) and IRA withdrawals?** Taxable, with the same small credit. Pensions are treated separately — Taxable, with a small retirement income credit. **Is Ohio a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 1.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.24% and effective property tax about 1.3% of home value. Estate or inheritance tax: none. **Does Ohio have an estate or inheritance tax?** No. Ohio levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Ohio tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Oklahoma (2025) > Does Oklahoma tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-oklahoma/ Markdown: https://savingslast.com/retirement-taxes-in-oklahoma.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate 4.75%. Social Security: not taxed. Retirement account withdrawals: same $10,000 exclusion applies. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-oklahoma/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.8% Oklahoma tax on retirement withdrawals. Change it to your own rate. ## What Oklahoma taxes in retirement | State income tax | Graduated, top rate 4.75% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Same $10,000 exclusion applies | | Pensions | Taxable, less a $10,000 exclusion per person; military retirement is fully exempt | | Estate or inheritance tax | None | | Average combined sales tax | 8.99% | | Average effective property tax | 0.76% of home value | A $10,000 per-person retirement exclusion and a full exemption for military retirement pay make Oklahoma cheap for modest drawdowns. Combined sales tax is among the highest in the country. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Oklahoma's estimated 2.8% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Oklahoma charges an average combined sales tax of about **8.99%** and levies an average effective property tax of about **0.76%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Oklahoma tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Oklahoma tax 401(k) and IRA withdrawals?** Same $10,000 exclusion applies. Pensions are treated separately — Taxable, less a $10,000 exclusion per person; military retirement is fully exempt. **Is Oklahoma a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.8% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 8.99% and effective property tax about 0.76% of home value. Estate or inheritance tax: none. **Does Oklahoma have an estate or inheritance tax?** No. Oklahoma levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Oklahoma tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Oregon (2025) > Does Oregon tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-oregon/ Markdown: https://savingslast.com/retirement-taxes-in-oregon.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Less tax-friendly.** Income tax: graduated, 4.75%–9.9%. Social Security: not taxed. Retirement account withdrawals: fully taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-oregon/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 17% — about 10% effective federal plus an estimated 7% Oregon tax on retirement withdrawals. Change it to your own rate. ## What Oregon taxes in retirement | State income tax | Graduated, 4.75%–9.9% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Fully taxable | | Pensions | Fully taxable, with only a small credit for those 62+ | | Estate or inheritance tax | Estate tax, $1 million exemption — the lowest in the country | | Average combined sales tax | 0% | | Average effective property tax | 0.77% of home value | Oregon is the hardest state in this table for a retiree living on portfolio withdrawals: the 8.75% bracket starts at a low income, there is no meaningful retirement exclusion, and the estate tax begins at $1 million. No sales tax is the offset. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Oregon's estimated 7% and it lasts about **16.9 years** — a difference of roughly **1.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Oregon charges **no sales tax at all** and levies an average effective property tax of about **0.77%** of a home's value, which is close to the national average. On death: estate tax, $1 million exemption — the lowest in the country. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Oregon tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Oregon tax 401(k) and IRA withdrawals?** Fully taxable. Pensions are treated separately — Fully taxable, with only a small credit for those 62+. **Is Oregon a good state to retire in for taxes?** Less tax-friendly on income tax. We estimate roughly 7% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. There is no sales tax and effective property tax about 0.77% of home value. Estate or inheritance tax: estate tax, $1 million exemption — the lowest in the country. **Does Oregon have an estate or inheritance tax?** Estate tax, $1 million exemption — the lowest in the country. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Oregon tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Pennsylvania (2025) > Does Pennsylvania tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-pennsylvania/ Markdown: https://savingslast.com/retirement-taxes-in-pennsylvania.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Income tax: flat 3.07%, but not on retirement income. Social Security: not taxed. Retirement account withdrawals: not taxed on distributions after 59½. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-pennsylvania/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Pennsylvania tax on retirement withdrawals. Change it to your own rate. ## What Pennsylvania taxes in retirement | State income tax | Flat 3.07%, but not on retirement income | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed on distributions after 59½ | | Pensions | Not taxed | | Estate or inheritance tax | Inheritance tax — 0% to a spouse, 4.5% to children, 12% to siblings, 15% to everyone else | | Average combined sales tax | 6.34% | | Average effective property tax | 1.26% of home value | Pennsylvania does not tax retirement income at all once you are past 59½, which makes it one of the best states in the country for the drawdown years. The inheritance tax is the sting, and it applies from the first dollar — there is no exemption threshold for non-spouse heirs. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Pennsylvania adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Pennsylvania charges an average combined sales tax of about **6.34%** and levies an average effective property tax of about **1.26%** of a home's value, which is above the national average. On death: inheritance tax — 0% to a spouse, 4.5% to children, 12% to siblings, 15% to everyone else. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Pennsylvania tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Pennsylvania tax 401(k) and IRA withdrawals?** Not taxed on distributions after 59½. Pensions are treated separately — Not taxed. **Is Pennsylvania a good state to retire in for taxes?** Very tax-friendly on income tax. We estimate roughly 0% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.34% and effective property tax about 1.26% of home value. Estate or inheritance tax: inheritance tax — 0% to a spouse, 4.5% to children, 12% to siblings, 15% to everyone else. **Does Pennsylvania have an estate or inheritance tax?** Inheritance tax — 0% to a spouse, 4.5% to children, 12% to siblings, 15% to everyone else. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Pennsylvania tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes by State > Which states tax Social Security, pensions and 401(k) withdrawals, plus sales, property and estate tax for all 50 states and DC. Reviewed for 2025. Source: https://savingslast.com/retirement-taxes-by-state/ Markdown: https://savingslast.com/retirement-taxes-by-state.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. The state you retire in changes how long your money lasts — but usually by less than people assume, and rarely in the direction the headlines suggest. Here is every state, what it taxes, and what it charges instead. ## The short version - **No state income tax at all (9):** [Alaska](https://savingslast.com/retirement-taxes-in-alaska/), [Florida](https://savingslast.com/retirement-taxes-in-florida/), [Nevada](https://savingslast.com/retirement-taxes-in-nevada/), [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/), [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/), [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/), [Texas](https://savingslast.com/retirement-taxes-in-texas/), [Washington](https://savingslast.com/retirement-taxes-in-washington/), [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/). - **Income tax, but retirement income is exempt (3):** [Illinois](https://savingslast.com/retirement-taxes-in-illinois/), [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/), [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/). - **Exclusions big enough that most retirees owe nothing (4):** [Georgia](https://savingslast.com/retirement-taxes-in-georgia/), [Iowa](https://savingslast.com/retirement-taxes-in-iowa/), [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/), [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/). - **Still tax Social Security (8):** [Colorado](https://savingslast.com/retirement-taxes-in-colorado/), [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/), [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/), [Montana](https://savingslast.com/retirement-taxes-in-montana/), [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/), [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/), [Utah](https://savingslast.com/retirement-taxes-in-utah/), [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) — all with income thresholds that exempt most retirees. - **Hardest on portfolio withdrawals:** [Oregon](https://savingslast.com/retirement-taxes-in-oregon/), [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/), [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/), [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/), [Idaho](https://savingslast.com/retirement-taxes-in-idaho/), [Indiana](https://savingslast.com/retirement-taxes-in-indiana/). ## Every state compared The effective-rate column estimates what a 65-year-old single filer pays in state income tax on $40,000 a year of retirement-account withdrawals, after that state's deductions and retirement exclusions. It is a planning figure for comparison, not a filing figure. | State | Income tax | Taxes Social Security? | Est. effective rate | Sales tax | Property tax | Estate / inheritance | | --- | --- | --- | --- | --- | --- | --- | | [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) | Graduated | No | ~3.5% | 9.29% | 0.36% | — | | [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) | None | No | 0% | 1.82% | 1.04% | — | | [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) | Flat 2.5% | No | ~2.2% | 8.38% | 0.45% | — | | [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) | Graduated | No | ~2.5% | 9.45% | 0.53% | — | | [California](https://savingslast.com/retirement-taxes-in-california/) | Graduated | No | ~1.5% | 8.85% | 0.68% | — | | [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) | Flat 4.4% | Yes, above a threshold | ~1.8% | 7.81% | 0.45% | — | | [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) | Graduated | Yes, above a threshold | ~0.5% | 6.35% | 1.78% | Estate + Gift | | [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) | Graduated | No | ~2.5% | 0% | 0.48% | — | | [Florida](https://savingslast.com/retirement-taxes-in-florida/) | None | No | 0% | 7% | 0.71% | — | | [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) | Flat rate | No | 0% | 7.42% | 0.72% | — | | [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) | Graduated | No | ~4.5% | 4.5% | 0.26% | Estate | | [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) | Flat rate | No | ~4% | 6.03% | 0.47% | — | | [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) | Flat 4.95% — but not on retirement income | No | 0% | 8.86% | 1.95% | Estate | | [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) | Flat state rate near 3% | No | ~4% | 7% | 0.71% | — | | [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) | Flat 3.8% | No | 0% | 6.94% | 1.4% | — | | [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) | Two brackets | No | ~4% | 8.65% | 1.26% | — | | [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) | Flat rate | No | ~0.9% | 6% | 0.74% | Inheritance | | [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) | Flat 3% from 2025 | No | ~2.5% | 9.56% | 0.51% | — | | [Maine](https://savingslast.com/retirement-taxes-in-maine/) | Graduated | No | ~0.5% | 5.5% | 1.09% | Estate | | [Maryland](https://savingslast.com/retirement-taxes-in-maryland/) | Graduated 2%–5.75% | No | ~3.5% | 6% | 0.95% | Estate + Inheritance | | [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) | Flat 5% | No | ~4.5% | 6.25% | 1.04% | Estate | | [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) | Flat 4.25% | No | ~1% | 6% | 1.24% | — | | [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) | Graduated | Yes, above a threshold | ~4.5% | 8.04% | 0.98% | Estate | | [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) | Flat rate falling toward 3% | No | 0% | 7.06% | 0.52% | — | | [Missouri](https://savingslast.com/retirement-taxes-in-missouri/) | Graduated | No | ~3% | 8.39% | 0.82% | — | | [Montana](https://savingslast.com/retirement-taxes-in-montana/) | Two brackets | Yes, above a threshold | ~4% | 0% | 0.69% | — | | [Nebraska](https://savingslast.com/retirement-taxes-in-nebraska/) | Graduated | No | ~3.5% | 6.97% | 1.44% | Inheritance | | [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) | None | No | 0% | 8.24% | 0.44% | — | | [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/) | None | No | 0% | 0% | 1.61% | — | | [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/) | Graduated | No | 0% | 6.6% | 2.23% | Estate + Inheritance | | [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/) | Graduated | Yes, above a threshold | ~2% | 7.62% | 0.67% | — | | [New York](https://savingslast.com/retirement-taxes-in-new-york/) | Graduated | No | ~2.3% | 8.53% | 1.4% | Estate | | [North Carolina](https://savingslast.com/retirement-taxes-in-north-carolina/) | Flat rate | No | ~3.6% | 7% | 0.63% | — | | [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/) | Graduated | No | 0% | 7.04% | 0.88% | — | | [Ohio](https://savingslast.com/retirement-taxes-in-ohio/) | Graduated | No | ~1.5% | 7.24% | 1.3% | — | | [Oklahoma](https://savingslast.com/retirement-taxes-in-oklahoma/) | Graduated | No | ~2.8% | 8.99% | 0.76% | — | | [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) | Graduated | No | ~7% | 0% | 0.77% | Estate | | [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/) | Flat 3.07% | No | 0% | 6.34% | 1.26% | Inheritance | | [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/) | Graduated | Yes, above a threshold | ~1% | 7% | 1.3% | Estate | | [South Carolina](https://savingslast.com/retirement-taxes-in-south-carolina/) | Graduated | No | ~2.5% | 7.5% | 0.46% | — | | [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/) | None | No | 0% | 6.11% | 1.01% | — | | [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/) | None | No | 0% | 9.55% | 0.48% | — | | [Texas](https://savingslast.com/retirement-taxes-in-texas/) | None | No | 0% | 8.2% | 1.47% | — | | [Utah](https://savingslast.com/retirement-taxes-in-utah/) | Flat rate | Yes, above a threshold | ~3.4% | 7.25% | 0.47% | — | | [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) | Graduated | Yes, above a threshold | ~3% | 6.36% | 1.78% | Estate | | [Virginia](https://savingslast.com/retirement-taxes-in-virginia/) | Graduated | No | ~3% | 5.77% | 0.72% | — | | [Washington](https://savingslast.com/retirement-taxes-in-washington/) | None | No | 0% | 9.38% | 0.76% | Estate | | [Washington, D.C.](https://savingslast.com/retirement-taxes-in-washington-dc/) | Graduated | No | ~4% | 6% | 0.55% | Estate | | [West Virginia](https://savingslast.com/retirement-taxes-in-west-virginia/) | Graduated | No | ~2.5% | 6.57% | 0.55% | — | | [Wisconsin](https://savingslast.com/retirement-taxes-in-wisconsin/) | Graduated | No | ~3.5% | 5.7% | 1.51% | — | | [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/) | None | No | 0% | 5.44% | 0.55% | — | ## What actually moves the needle Run the arithmetic before running the moving van. On a $500,000 balance withdrawn at $2,500 a month, going from a 5% effective state tax to zero extends the money by roughly 1.3 years. That is worth having. It is also less than the difference between a paid-off house and a mortgage, and less than the difference between claiming Social Security at 62 and at 70. Three things routinely swamp the income tax comparison: - **Property tax on the house you actually buy.** New Jersey's 2.23% and Illinois' 1.95% effective rates cost more each year than most states' income tax on a retiree. - **Estate tax thresholds.** Oregon taxes estates above $1 million and Massachusetts above $2 million. A house plus a portfolio clears that easily, and neither state is on anyone's list of "high tax" for retirees. - **Healthcare access.** Distance to a specialist is not a tax, but it is a cost, and it rises with age in a way the tax bill does not. ## Pick your state ## All 51 pages - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Hawaii](https://savingslast.com/retirement-taxes-in-hawaii/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Louisiana](https://savingslast.com/retirement-taxes-in-louisiana/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) - [Maryland](https://savingslast.com/retirement-taxes-in-maryland/) - [Massachusetts](https://savingslast.com/retirement-taxes-in-massachusetts/) - [Michigan](https://savingslast.com/retirement-taxes-in-michigan/) - [Minnesota](https://savingslast.com/retirement-taxes-in-minnesota/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) - [Missouri](https://savingslast.com/retirement-taxes-in-missouri/) - [Montana](https://savingslast.com/retirement-taxes-in-montana/) - [Nebraska](https://savingslast.com/retirement-taxes-in-nebraska/) - [Nevada](https://savingslast.com/retirement-taxes-in-nevada/) - [New Hampshire](https://savingslast.com/retirement-taxes-in-new-hampshire/) - [New Jersey](https://savingslast.com/retirement-taxes-in-new-jersey/) - [New Mexico](https://savingslast.com/retirement-taxes-in-new-mexico/) - [New York](https://savingslast.com/retirement-taxes-in-new-york/) - [North Carolina](https://savingslast.com/retirement-taxes-in-north-carolina/) - [North Dakota](https://savingslast.com/retirement-taxes-in-north-dakota/) - [Ohio](https://savingslast.com/retirement-taxes-in-ohio/) - [Oklahoma](https://savingslast.com/retirement-taxes-in-oklahoma/) - [Oregon](https://savingslast.com/retirement-taxes-in-oregon/) - [Pennsylvania](https://savingslast.com/retirement-taxes-in-pennsylvania/) - [Rhode Island](https://savingslast.com/retirement-taxes-in-rhode-island/) - [South Carolina](https://savingslast.com/retirement-taxes-in-south-carolina/) - [South Dakota](https://savingslast.com/retirement-taxes-in-south-dakota/) - [Tennessee](https://savingslast.com/retirement-taxes-in-tennessee/) - [Texas](https://savingslast.com/retirement-taxes-in-texas/) - [Utah](https://savingslast.com/retirement-taxes-in-utah/) - [Vermont](https://savingslast.com/retirement-taxes-in-vermont/) - [Virginia](https://savingslast.com/retirement-taxes-in-virginia/) - [Washington](https://savingslast.com/retirement-taxes-in-washington/) - [West Virginia](https://savingslast.com/retirement-taxes-in-west-virginia/) - [Wisconsin](https://savingslast.com/retirement-taxes-in-wisconsin/) - [Wyoming](https://savingslast.com/retirement-taxes-in-wyoming/) - [Washington, D.C.](https://savingslast.com/retirement-taxes-in-washington-dc/) ## Frequently asked questions **Which states are best for retirement taxes?** The 9 states with no income tax at all — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming — plus Illinois, Mississippi, Pennsylvania, which have an income tax but exempt retirement income from it entirely. Beyond those, Georgia, Iowa, New Jersey, North Dakota leave a typical retiree owing nothing through exclusions large enough to cover an ordinary drawdown. **Which states tax Social Security?** Eight, for the 2026 tax year: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont. Most exempt the benefit entirely below an income threshold, so far fewer retirees pay than the list implies. **Is it worth moving states to save tax in retirement?** Sometimes, but the saving is usually smaller than expected. States without income tax collect it back through property or sales tax, and for most retirees the state income tax changes how long savings last by months rather than decades. Housing costs, healthcare access and family usually matter more. **Which states have an estate or inheritance tax?** Twelve states and DC levy an estate tax, five levy an inheritance tax, and Maryland levies both. State thresholds are often far below the federal exemption — Oregon starts at $1 million and Massachusetts at $2 million — so an estate that owes nothing federally can still owe at state level. ## Related - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Many states are mid-way through scheduled rate cuts; confirm current figures with the relevant state agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)). --- # Retirement Taxes in Rhode Island (2025) > Does Rhode Island tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-rhode-island/ Markdown: https://savingslast.com/retirement-taxes-in-rhode-island.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Tax-friendly.** Income tax: graduated, 3.75%–5.99%. Social Security: taxed, but exempt at full retirement age below roughly $104,000 AGI (single) / $130,000 (joint). Retirement account withdrawals: same $20,000 exclusion. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-rhode-island/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 11% — about 10% effective federal plus an estimated 1% Rhode Island tax on retirement withdrawals. Change it to your own rate. ## What Rhode Island taxes in retirement | State income tax | Graduated, 3.75%–5.99% | | --- | --- | | Social Security | Taxed, but exempt at full retirement age below roughly $104,000 AGI (single) / $130,000 (joint) | | 401(k) and IRA withdrawals | Same $20,000 exclusion | | Pensions | A $20,000 pension and annuity exclusion applies under the same conditions | | Estate or inheritance tax | Estate tax with a low exemption of roughly $1.8 million | | Average combined sales tax | 7% | | Average effective property tax | 1.3% of home value | Rhode Island taxes Social Security on paper but exempts it for anyone at full retirement age under the income limits, and adds a $20,000 exclusion on top. The estate tax exemption is one of the lowest in the country. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Rhode Island's estimated 1% and it lasts about **18.5 years** — a difference of roughly **0.3 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Rhode Island charges an average combined sales tax of about **7%** and levies an average effective property tax of about **1.3%** of a home's value, which is above the national average. On death: estate tax with a low exemption of roughly $1.8 million. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Rhode Island tax Social Security benefits?** Taxed, but exempt at full retirement age below roughly $104,000 AGI (single) / $130,000 (joint). Rhode Island is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Rhode Island tax 401(k) and IRA withdrawals?** Same $20,000 exclusion. Pensions are treated separately — A $20,000 pension and annuity exclusion applies under the same conditions. **Is Rhode Island a good state to retire in for taxes?** Tax-friendly on income tax. We estimate roughly 1% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7% and effective property tax about 1.3% of home value. Estate or inheritance tax: estate tax with a low exemption of roughly $1.8 million. **Does Rhode Island have an estate or inheritance tax?** Estate tax with a low exemption of roughly $1.8 million. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Arizona](https://savingslast.com/retirement-taxes-in-arizona/) - [California](https://savingslast.com/retirement-taxes-in-california/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Kentucky](https://savingslast.com/retirement-taxes-in-kentucky/) - [Maine](https://savingslast.com/retirement-taxes-in-maine/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Rhode Island tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in South Carolina (2025) > Does South Carolina tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-south-carolina/ Markdown: https://savingslast.com/retirement-taxes-in-south-carolina.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate around 6%. Social Security: not taxed. Retirement account withdrawals: same deduction, plus a broader deduction at 65+. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-south-carolina/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.5% South Carolina tax on retirement withdrawals. Change it to your own rate. ## What South Carolina taxes in retirement | State income tax | Graduated, top rate around 6% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Same deduction, plus a broader deduction at 65+ | | Pensions | Retirement deduction of $10,000 under 65 and $15,000 at 65+, per person | | Estate or inheritance tax | None | | Average combined sales tax | 7.5% | | Average effective property tax | 0.46% of home value | South Carolina stacks a retirement deduction with a general 65-and-over deduction, and has some of the lowest effective property taxes in the country for owner-occupiers. It is the quieter alternative to Florida. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add South Carolina's estimated 2.5% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. South Carolina charges an average combined sales tax of about **7.5%** and levies an average effective property tax of about **0.46%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does South Carolina tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does South Carolina tax 401(k) and IRA withdrawals?** Same deduction, plus a broader deduction at 65+. Pensions are treated separately — Retirement deduction of $10,000 under 65 and $15,000 at 65+, per person. **Is South Carolina a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.5% and effective property tax about 0.46% of home value. Estate or inheritance tax: none. **Does South Carolina have an estate or inheritance tax?** No. South Carolina levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the South Carolina tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in South Dakota (2025) > Does South Dakota tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-south-dakota/ Markdown: https://savingslast.com/retirement-taxes-in-south-dakota.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** South Dakota has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-south-dakota/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% South Dakota tax on retirement withdrawals. Change it to your own rate. ## What South Dakota taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 6.11% | | Average effective property tax | 1.01% of home value | No income tax, no estate tax and a low sales tax. South Dakota’s trust laws also make it a common domicile for larger estates; property taxes are the one meaningful cost. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and South Dakota adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. South Dakota charges an average combined sales tax of about **6.11%** and levies an average effective property tax of about **1.01%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does South Dakota tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does South Dakota tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is South Dakota a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 6.11% and effective property tax about 1.01% of home value. Estate or inheritance tax: none. **Does South Dakota have an estate or inheritance tax?** No. South Dakota levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the South Dakota tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Tennessee (2025) > Does Tennessee tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-tennessee/ Markdown: https://savingslast.com/retirement-taxes-in-tennessee.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Tennessee has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-tennessee/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Tennessee tax on retirement withdrawals. Change it to your own rate. ## What Tennessee taxes in retirement | State income tax | None — the Hall tax on investment income was fully repealed in 2021 | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 9.55% | | Average effective property tax | 0.48% of home value | Tennessee finished phasing out its tax on interest and dividends in 2021, so portfolio income is now entirely untaxed at state level. It funds itself through the highest average sales tax in the country instead. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Tennessee adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Tennessee charges an average combined sales tax of about **9.55%** and levies an average effective property tax of about **0.48%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Tennessee tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Tennessee tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Tennessee a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 9.55% and effective property tax about 0.48% of home value. Estate or inheritance tax: none. **Does Tennessee have an estate or inheritance tax?** No. Tennessee levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Tennessee tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Texas (2025) > Does Texas tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-texas/ Markdown: https://savingslast.com/retirement-taxes-in-texas.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Texas has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-texas/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Texas tax on retirement withdrawals. Change it to your own rate. ## What Texas taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 8.2% | | Average effective property tax | 1.47% of home value | No income tax at all, funded by property tax rates near the top of the national table. Texas offers a homestead exemption and a school-tax freeze at 65, which materially changes the picture for long-term owners. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Texas adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Texas charges an average combined sales tax of about **8.2%** and levies an average effective property tax of about **1.47%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Texas tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Texas tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Texas a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 8.2% and effective property tax about 1.47% of home value. Estate or inheritance tax: none. **Does Texas have an estate or inheritance tax?** No. Texas levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Texas tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Utah (2025) > Does Utah tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-utah/ Markdown: https://savingslast.com/retirement-taxes-in-utah.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: flat rate, around 4.5%. Social Security: taxed, offset by a retirement credit of up to $450 per person that phases out with income. Retirement account withdrawals: taxable, with the same credit. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-utah/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 3.4% Utah tax on retirement withdrawals. Change it to your own rate. ## What Utah taxes in retirement | State income tax | Flat rate, around 4.5% | | --- | --- | | Social Security | Taxed, offset by a retirement credit of up to $450 per person that phases out with income | | 401(k) and IRA withdrawals | Taxable, with the same credit | | Pensions | Taxable, with the same credit | | Estate or inheritance tax | None | | Average combined sales tax | 7.25% | | Average effective property tax | 0.47% of home value | Utah taxes everything at one flat rate, Social Security included, and hands back a credit that phases out as income rises. It has widened the credit thresholds repeatedly, so the effective burden on middle-income retirees keeps falling. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Utah's estimated 3.4% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Utah charges an average combined sales tax of about **7.25%** and levies an average effective property tax of about **0.47%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Utah tax Social Security benefits?** Taxed, offset by a retirement credit of up to $450 per person that phases out with income. Utah is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Utah tax 401(k) and IRA withdrawals?** Taxable, with the same credit. Pensions are treated separately — Taxable, with the same credit. **Is Utah a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 7.25% and effective property tax about 0.47% of home value. Estate or inheritance tax: none. **Does Utah have an estate or inheritance tax?** No. Utah levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Utah tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Vermont (2025) > Does Vermont tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-vermont/ Markdown: https://savingslast.com/retirement-taxes-in-vermont.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, 3.35%–8.75%. Social Security: taxed, exempt below $50,000 AGI (single) / $65,000 (joint) and phased out above. Retirement account withdrawals: taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-vermont/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 3% Vermont tax on retirement withdrawals. Change it to your own rate. ## What Vermont taxes in retirement | State income tax | Graduated, 3.35%–8.75% | | --- | --- | | Social Security | Taxed, exempt below $50,000 AGI (single) / $65,000 (joint) and phased out above | | 401(k) and IRA withdrawals | Taxable | | Pensions | Taxable, with a $10,000 exclusion for certain pensions | | Estate or inheritance tax | Estate tax, $5 million exemption | | Average combined sales tax | 6.36% | | Average effective property tax | 1.78% of home value | Vermont taxes Social Security above modest income thresholds and offers little else in the way of retirement relief. High property taxes make it one of the more expensive New England states to retire in. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Vermont's estimated 3% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Vermont charges an average combined sales tax of about **6.36%** and levies an average effective property tax of about **1.78%** of a home's value, which is above the national average. On death: estate tax, $5 million exemption. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Vermont tax Social Security benefits?** Taxed, exempt below $50,000 AGI (single) / $65,000 (joint) and phased out above. Vermont is one of only eight states that still tax Social Security at all, and the income thresholds mean many retirees pay nothing. See [which states tax Social Security](https://savingslast.com/social-security-taxes-by-state/). **Does Vermont tax 401(k) and IRA withdrawals?** Taxable. Pensions are treated separately — Taxable, with a $10,000 exclusion for certain pensions. **Is Vermont a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.36% and effective property tax about 1.78% of home value. Estate or inheritance tax: estate tax, $5 million exemption. **Does Vermont have an estate or inheritance tax?** Estate tax, $5 million exemption. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Vermont tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Virginia (2025) > Does Virginia tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-virginia/ Markdown: https://savingslast.com/retirement-taxes-in-virginia.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate 5.75%. Social Security: not taxed. Retirement account withdrawals: same age deduction applies. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-virginia/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 3% Virginia tax on retirement withdrawals. Change it to your own rate. ## What Virginia taxes in retirement | State income tax | Graduated, top rate 5.75% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Same age deduction applies | | Pensions | Taxable, less an age deduction of up to $12,000 at 65+ that is reduced as income rises | | Estate or inheritance tax | None | | Average combined sales tax | 5.77% | | Average effective property tax | 0.72% of home value | Virginia’s top 5.75% bracket starts at a very low income, so most retirement income is taxed at the top rate. The $12,000 age deduction helps, but it is income-tested and shrinks for higher earners. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Virginia's estimated 3% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Virginia charges an average combined sales tax of about **5.77%** and levies an average effective property tax of about **0.72%** of a home's value, which is close to the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Virginia tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Virginia tax 401(k) and IRA withdrawals?** Same age deduction applies. Pensions are treated separately — Taxable, less an age deduction of up to $12,000 at 65+ that is reduced as income rises. **Is Virginia a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 5.77% and effective property tax about 0.72% of home value. Estate or inheritance tax: none. **Does Virginia have an estate or inheritance tax?** No. Virginia levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Virginia tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Washington (2025) > Does Washington tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-washington/ Markdown: https://savingslast.com/retirement-taxes-in-washington.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Washington has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-washington/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Washington tax on retirement withdrawals. Change it to your own rate. ## What Washington taxes in retirement | State income tax | None on ordinary income; a 7% tax applies to large long-term capital gains | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed — the capital gains tax does not apply to retirement account withdrawals | | Pensions | Not taxed | | Estate or inheritance tax | Estate tax with a low exemption and the highest top rate of any state | | Average combined sales tax | 9.38% | | Average effective property tax | 0.76% of home value | Washington has no income tax on withdrawals, but it does have an estate tax with a low threshold and the steepest top rate in the country. For a retiree spending down a portfolio it is cheap; for one planning to leave a large estate it is not. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Washington adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Washington charges an average combined sales tax of about **9.38%** and levies an average effective property tax of about **0.76%** of a home's value, which is close to the national average. On death: estate tax with a low exemption and the highest top rate of any state. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Washington tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Washington tax 401(k) and IRA withdrawals?** Not taxed — the capital gains tax does not apply to retirement account withdrawals. Pensions are treated separately — Not taxed. **Is Washington a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 9.38% and effective property tax about 0.76% of home value. Estate or inheritance tax: estate tax with a low exemption and the highest top rate of any state. **Does Washington have an estate or inheritance tax?** Estate tax with a low exemption and the highest top rate of any state. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Washington tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Washington, D.C. (2025) > Does Washington, D.C. tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-washington-dc/ Markdown: https://savingslast.com/retirement-taxes-in-washington-dc.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, 4%–10.75%. Social Security: not taxed. Retirement account withdrawals: fully taxable. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-washington-dc/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 4% Washington, D.C. tax on retirement withdrawals. Change it to your own rate. ## What Washington, D.C. taxes in retirement | State income tax | Graduated, 4%–10.75% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Fully taxable | | Pensions | Fully taxable — there is no general retirement income exclusion | | Estate or inheritance tax | Estate tax | | Average combined sales tax | 6% | | Average effective property tax | 0.55% of home value | The District exempts Social Security and taxes everything else with no retirement exclusion at all, on brackets that reach 10.75%. Low property taxes are the offset. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Washington, D.C.'s estimated 4% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Washington, D.C. charges an average combined sales tax of about **6%** and levies an average effective property tax of about **0.55%** of a home's value, which is well below the national average. On death: estate tax. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Washington, D.C. tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Washington, D.C. tax 401(k) and IRA withdrawals?** Fully taxable. Pensions are treated separately — Fully taxable — there is no general retirement income exclusion. **Is Washington, D.C. a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 4% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6% and effective property tax about 0.55% of home value. Estate or inheritance tax: estate tax. **Does Washington, D.C. have an estate or inheritance tax?** Estate tax. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Washington, D.C. tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in West Virginia (2025) > Does West Virginia tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-west-virginia/ Markdown: https://savingslast.com/retirement-taxes-in-west-virginia.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, top rate cut in steps below 5%. Social Security: fully exempt from the 2026 tax year, after a three-year phase-out. Retirement account withdrawals: same $8,000 exemption. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-west-virginia/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 13% — about 10% effective federal plus an estimated 2.5% West Virginia tax on retirement withdrawals. Change it to your own rate. ## What West Virginia taxes in retirement | State income tax | Graduated, top rate cut in steps below 5% | | --- | --- | | Social Security | Fully exempt from the 2026 tax year, after a three-year phase-out | | 401(k) and IRA withdrawals | Same $8,000 exemption | | Pensions | Taxable, less an $8,000 general exemption at 65+ | | Estate or inheritance tax | None | | Average combined sales tax | 6.57% | | Average effective property tax | 0.55% of home value | West Virginia finished phasing out its Social Security tax — 35% exempt in 2024, 65% in 2025 and fully exempt from 2026. Combined with falling rates and the second-lowest property taxes in the East, it has moved sharply in retirees’ favour. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add West Virginia's estimated 2.5% and it lasts about **17.9 years** — a difference of roughly **0.9 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. West Virginia charges an average combined sales tax of about **6.57%** and levies an average effective property tax of about **0.55%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does West Virginia tax Social Security benefits?** Fully exempt from the 2026 tax year, after a three-year phase-out. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does West Virginia tax 401(k) and IRA withdrawals?** Same $8,000 exemption. Pensions are treated separately — Taxable, less an $8,000 general exemption at 65+. **Is West Virginia a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 2.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 6.57% and effective property tax about 0.55% of home value. Estate or inheritance tax: none. **Does West Virginia have an estate or inheritance tax?** No. West Virginia levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the West Virginia tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Wisconsin (2025) > Does Wisconsin tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-wisconsin/ Markdown: https://savingslast.com/retirement-taxes-in-wisconsin.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Middle of the pack.** Income tax: graduated, 3.5%–7.65%. Social Security: not taxed. Retirement account withdrawals: taxable, less a $5,000 exclusion at 65+ that is income-tested. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-wisconsin/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 14% — about 10% effective federal plus an estimated 3.5% Wisconsin tax on retirement withdrawals. Change it to your own rate. ## What Wisconsin taxes in retirement | State income tax | Graduated, 3.5%–7.65% | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Taxable, less a $5,000 exclusion at 65+ that is income-tested | | Pensions | Taxable; certain pre-1964 public pensions are exempt | | Estate or inheritance tax | None | | Average combined sales tax | 5.7% | | Average effective property tax | 1.51% of home value | Wisconsin exempts Social Security but gives retirees very little else, and its 7.65% top bracket is reached at a modest income. Property taxes are high. ## What the state tax actually costs you Take a $500,000 balance and withdraw $2,500 a month, rising with inflation. At an effective federal rate of 10% alone, the money lasts about **18.8 years**. Add Wisconsin's estimated 3.5% and it lasts about **17.7 years** — a difference of roughly **1.1 years**. That is the honest scale of it. State income tax is real money, but for most retirees it changes the answer by months or a couple of years, not decades — and it is usually smaller than the effect of housing costs, which is why a move made purely for income tax often fails to pay for itself. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Wisconsin charges an average combined sales tax of about **5.7%** and levies an average effective property tax of about **1.51%** of a home's value, which is above the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Wisconsin tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Wisconsin tax 401(k) and IRA withdrawals?** Taxable, less a $5,000 exclusion at 65+ that is income-tested. Pensions are treated separately — Taxable; certain pre-1964 public pensions are exempt. **Is Wisconsin a good state to retire in for taxes?** Middle of the pack on income tax. We estimate roughly 3.5% effective state tax on $40,000 a year of withdrawals for a 65-year-old single filer. Average combined sales tax is about 5.7% and effective property tax about 1.51% of home value. Estate or inheritance tax: none. **Does Wisconsin have an estate or inheritance tax?** No. Wisconsin levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Similar states for retirees - [Alabama](https://savingslast.com/retirement-taxes-in-alabama/) - [Arkansas](https://savingslast.com/retirement-taxes-in-arkansas/) - [Delaware](https://savingslast.com/retirement-taxes-in-delaware/) - [Idaho](https://savingslast.com/retirement-taxes-in-idaho/) - [Indiana](https://savingslast.com/retirement-taxes-in-indiana/) - [Kansas](https://savingslast.com/retirement-taxes-in-kansas/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Wisconsin tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # Retirement Taxes in Wyoming (2025) > Does Wyoming tax Social Security, pensions or 401(k) withdrawals? The 2025 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-wyoming/ Markdown: https://savingslast.com/retirement-taxes-in-wyoming.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Wyoming has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-wyoming/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus an estimated 0% Wyoming tax on retirement withdrawals. Change it to your own rate. ## What Wyoming taxes in retirement | State income tax | None | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed | | Pensions | Not taxed | | Estate or inheritance tax | None | | Average combined sales tax | 5.44% | | Average effective property tax | 0.55% of home value | No income tax, no estate tax, a low sales tax and low property taxes, funded largely by mineral extraction revenue. On tax alone Wyoming is close to the best state in the country to retire in; the trade-offs are climate, distance and thin healthcare provision. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Wyoming adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Wyoming charges an average combined sales tax of about **5.44%** and levies an average effective property tax of about **0.55%** of a home's value, which is well below the national average. There is no state estate or inheritance tax, so only the federal estate tax applies and its exemption is high enough that almost no estate owes it. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Wyoming tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Wyoming tax 401(k) and IRA withdrawals?** Not taxed. Pensions are treated separately — Not taxed. **Is Wyoming a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 5.44% and effective property tax about 0.55% of home value. Estate or inheritance tax: none. **Does Wyoming have an estate or inheritance tax?** No. Wyoming levies neither an estate tax nor an inheritance tax, so only the federal estate tax applies, and its exemption is high enough that very few estates owe anything. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) - [Iowa](https://savingslast.com/retirement-taxes-in-iowa/) - [Mississippi](https://savingslast.com/retirement-taxes-in-mississippi/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) 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. Reviewed for the 2025 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Wyoming tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective-rate estimate is a planning figure, not a filing figure. --- # 72(t) Calculator Test Cases > Ten worked examples from the IRS SEPP FAQ and Notice 2022-6, with every input and the expected figure. Test any 72(t) calculator against them before you file. Source: https://savingslast.com/72t-calculator-test-cases/ Markdown: https://savingslast.com/72t-calculator-test-cases.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A 72(t) figure is filed with the IRS, and a wrong one recaptures the 10% penalty on every payment already taken. The IRS has published worked examples. Run them through any calculator before you trust it. That includes this one. The last column is what this site's engine produces for each example, recomputed on every build. ## The ten examples | # | Example and source | Inputs | IRS figure | This site | | --- | --- | --- | --- | --- | | 1 | **RMD method, first distribution year** IRS SEPP FAQ Q&A 7, example 1; Single Life Table, 26 CFR § 1.401(a)(9)-9(b). $400,000/36.2 = $11,050. | balance: $400,000, age: 50, rate: 0, method: rmd, table: single | $11,050 a year, factor 36.2 | ✓ $11,050 a year, factor 36.2 | | 2 | **RMD method, second distribution year, both balance and factor redetermined** IRS SEPP FAQ Q&A 7, example 1 continued. $408,304/35.3 = $11,567. | balance: $408,304, age: 51, rate: 0, method: rmd, table: single | $11,567 a year, factor 35.3 | ✓ $11,567 a year, factor 35.3 | | 3 | **Fixed amortization at 4%, which the 5% floor permits even though 120% of the mid-term rate is 2.98%** IRS SEPP FAQ Q&A 7, example 2. Factor 18.9559 = present value of $1 a year for 36.2 years at 4%. $400,000/18.9559 = $21,102. | balance: $400,000, age: 50, rate: 4, method: amortization, table: single, mid120: 2.98 | $21,102 a year, factor 36.2, annuity factor 18.9559 | ✓ $21,102 a year, factor 36.2, annuity factor 18.9559 | | 4 | **Fixed annuitization at 4%, from the mortality rates rather than any life expectancy table** IRS SEPP FAQ Q&A 7, example 3; mortality rates, 26 CFR § 1.401(a)(9)-9(e). $400,000/18.1568 = $22,030. | balance: $400,000, age: 50, rate: 4, method: annuitization, table: single, mid120: 2.98 | $22,030 a year, annuity factor 18.1568 | ✓ $22,030 a year, annuity factor 18.1568 | | 5 | **One-time switch to the RMD method in a later year** IRS SEPP FAQ Q&A 10. Sam switches from fixed amortization in 2026 using the 31 Dec 2025 balance and his age-55 factor. $810,250/31.6 = $25,641. | balance: $810,250, age: 55, rate: 0, method: rmd, table: single | $25,641 a year, factor 31.6 | ✓ $25,641 a year, factor 31.6 | | 6 | **Joint and Last Survivor lookup, where the OLDER beneficiary governs** Notice 2022-6 § 3.02(b), the notice's own example: beneficiaries aged 25 and 55, and the number used is 40.2 for ages 50 and 55. The 25-year-old would give 61.1. | balance: $400,000, age: 50, beneficiaryAge: 55, rate: 0, method: rmd, table: joint | factor 40.2 | ✓ factor 40.2 | | 7 | **Rate ceiling is the greater of the two, so the 5% floor binds when the AFR is low** Notice 2022-6 § 3.02(c). 120% of the mid-term rate is 2.98%, so the ceiling is the 5% floor. | balance: $400,000, age: 50, rate: 5, method: amortization, table: single, mid120: 2.98 | ceiling 5%, rate permitted | ✓ ceiling 5%, rate permitted | | 8 | **Rate ceiling rises above 5% when the AFR does** Rev. Rul. 2026-17, September 2026: mid-term AFR 4.49%, printed 120% AFR 5.40%. Note 1.2 x 4.49 = 5.39, so a computed ceiling would wrongly refuse this rate. | balance: $400,000, age: 50, rate: 5.4, method: amortization, table: single, mid120: 5.4 | ceiling 5.4%, rate permitted | ✓ ceiling 5.4%, rate permitted | | 9 | **Lock-in ends on the fifth anniversary when that falls after 59 1/2** IRS SEPP FAQ Q&A 13, example 1. Age 59 1/2 falls on 15 Feb 2028, but the series cannot be modified until 1 Dec 2029. | birthDate: 1968-08-15, firstPayment: 2024-12-01 | ends 2029-12-01 (five-year period) | ✓ ends 2029-12-01 (five-year period) | | 10 | **Lock-in ends at 59 1/2 when that falls after the fifth anniversary, and six calendar months is not 0.5 years** IRS SEPP FAQ Q&A 13, example 2. The fifth annual payment lands 1 Dec 2024 and the five-year period ends 1 Dec 2025, but 59 1/2 on 15 Feb 2028 governs. Elapsed-time arithmetic gives 14 Feb 2028 and would be wrong. | birthDate: 1968-08-15, firstPayment: 2020-12-01 | ends 2028-02-15 (age 59 1/2) | ✓ ends 2028-02-15 (age 59 1/2) | Rates and the 120% mid-term figure are percentages. Ages are the age on the birthday in the distribution year. Balances are as of the valuation date. Sources: the IRS page "Substantially equal periodic payments", Q&A 4, 7, 10 and 13; IRS Notice 2022-6, section 3.02; Rev. Rul. 2026-17 for the September 2026 rate. ## How to test another calculator with them 1. Enter example 3: $400,000, age 50, 4%, Single Life Table, fixed amortization. The answer is $21,102. A tool that returns about $20,300 is using the pre-2022 life expectancy tables, which were replaced for distribution years from 2022. A tool that returns about $21,900 is using an annuity-due formula, which the IRS's published factor rules out. 2. Enter example 4 with the annuitization method. The answer is $22,030. A tool that applies a life expectancy table here instead of the mortality table gives a different figure, and that is the most common implementation error. 3. Enter a 5% rate with a 120% mid-term rate of 2.98%. A tool that refuses 5% has not read Notice 2022-6, which made 5% the floor under the ceiling in 2022. 4. Enter example 10: born 15 August 1968, first payment 1 December 2020. The lock-in ends 15 February 2028. A tool that says 14 February has computed 59½ as elapsed time rather than six calendar months after the 59th birthday. A modification on that day recaptures the whole series. ## What the examples cannot check Three things move a payment and no worked example covers them. The month your 120% mid-term rate comes from, which must be one of the two months before the first payment. The date of the balance you divide, which must fall between 31 December of the prior year and the first payment. And the table you chose, which is locked for the term. A calculator that passes all ten examples can still be given the wrong inputs, and the inputs are your responsibility, not the calculator's. The engine behind these figures is described on the [methodology page](https://savingslast.com/methodology/) and runs on the [72(t) calculator](https://savingslast.com/72t-distribution-calculator/). If you find an IRS example it fails, write to [hello@savingslast.com](mailto:hello@savingslast.com). It goes in the [corrections log](https://savingslast.com/corrections/). --- # About SavingsLast > Who builds SavingsLast, how the calculators work, what they do not claim to be, and how the site is paid for. Source: https://savingslast.com/about/ Markdown: https://savingslast.com/about.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. I built SavingsLast to answer one question properly: **how long will my money last?** I am **Muhammad Ejaz**, a finance content creator based in Texas, and I studied at the University of San Francisco. You can find me on [LinkedIn](https://www.linkedin.com/in/muhammad-ejaz-a010a4431/). I write and maintain everything on this site, and the calculators are mine. Every time I went looking for that number I found the same three things. Calculators that hide their assumptions, so you cannot tell whether the answer is optimistic. Calculators that want your email before they will tell you anything. And calculators attached to a company that would quite like to sell you an annuity. So this one does the opposite. It runs entirely in your browser — your balance never leaves your device and is never sent to us. It shows its working: the exact monthly loop, the tax gross-up and the solver are written out on the [methodology page](https://savingslast.com/methodology/). And it gives you the number on the first screen, with no email box in the way. ## What this is not I am not a financial adviser, and I am not going to pretend otherwise. Nothing on this site is advice about your situation, because I do not know your situation. What I can offer is arithmetic that is correct, assumptions that are stated plainly, and a tool that lets you change any of them and watch what happens. I passed FINRA's Securities Industry Essentials exam on 23 October 2019, while I was at Chase. It expired in 2023 — SIE credit runs for four years — and I have never been a registered representative. I mention it so you know where my grounding comes from, not as a qualification to advise you. That is deliberately a narrower promise than most retirement sites make. It is also one I can actually keep. ## How the numbers are checked The static tables in the articles and the live calculator run on the same engine, so they cannot disagree with each other. Every deploy runs an automated check against the published site that re-computes known results — a $500,000 balance at $3,000 a month, the Social Security claiming factors, the 62-versus-70 break-even age — and refuses to ship if any of them moved. Where a guide cites outside research, such as Morningstar's annual safe-withdrawal work, the figure is verified against the source rather than recalled, and the date it was checked is recorded. ## How the site is paid for Advertising, and affiliate referrals where they are marked as such. Those never influence a calculation or a recommendation — the arithmetic does not know they exist, and you can read it yourself to confirm that. If a page ever suggests a service, it is labelled. ## Corrections If you think a number here is wrong, please tell me: **hello@savingslast.com**. Retirement arithmetic is not a matter of opinion, so if you are right I will fix it and say so. Several of the sharper edges in these calculators were found exactly that way. --- # Corrections > Every correction made to a figure or a rule statement on SavingsLast, with the date, what was wrong, what it is now, and who found it. Source: https://savingslast.com/corrections/ Markdown: https://savingslast.com/corrections.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. A page that says what it got wrong, and when, can be believed about what it says now. Every correction to a figure or a rule statement on this site is listed here. Typos and wording changes are not. ## 2026 2 September 2026 The three pages titled for Social Security income and the pension page took no income input; their copy told you to subtract the income from your spending by hand. Every drawdown calculator now has Social Security and pension fields, netted against spending month by month from the age you enter. Found in an audit of what the page titles promised against what the forms took. 1 September 2026 The 72(t) calculator page ran the site's generic drawdown model with the 10% penalty switched off, and let you type any withdrawal. It did not compute a 72(t) payment. Its FAQ said a $500,000 IRA at 52 "typically produces somewhere near $19,000–24,000 a year". The fixed amortization method at the 5% floor pays $30,773. The page now runs the IRS calculation for all three methods, checked against ten published IRS examples on every build. Found while answering a reader's question on Reddit. ## How to report an error Write to [hello@savingslast.com](mailto:hello@savingslast.com) with the page, the inputs and the figure you expected. A confirmed error is fixed on the page, noted at the foot of that page with the date, and listed here. --- # Disclaimer > SavingsLast calculators are educational estimates, not financial advice. Source: https://savingslast.com/disclaimer/ Markdown: https://savingslast.com/disclaimer.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. 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. Tax rules, contribution limits, RMD ages and Social Security figures change; we review content annually but cannot guarantee it is current. Verify with the IRS, SSA, your plan administrator, or a licensed professional. --- # Embed These Calculators On Your Site > Add any of 8 free retirement calculators to your own site. One line of code each, no signup, works on any page. Free to use with attribution. Source: https://savingslast.com/embed-calculator/ Markdown: https://savingslast.com/embed-calculator.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Free for any website — financial advisers, bloggers, credit unions, HR and benefits teams, tax preparers. Copy one line of code. No signup, no tracking of your readers, no cost. ## Terms Use any of them freely on any site, commercial or not. The only condition is that you keep the small attribution link to SavingsLast beneath the calculator. Please embed it rather than copying the code, so your readers always get the current version and corrected figures. Questions or a custom version for your organisation: [hello@savingslast.com](mailto:hello@savingslast.com) ## How Long Will My Money Last? For financial advisers, bloggers, credit unions, HR and benefits teams. Your readers get a month-by-month simulation with inflation-adjusted withdrawals, a balance chart, and the maximum sustainable withdrawal for 20, 25 and 30 years. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Social Security Break-Even For financial advisers and retirement bloggers. Your readers get what Social Security pays at every claiming age from 62 to 70, and the age at which waiting overtakes claiming early. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## 72(t) / SEPP Distribution For financial advisers and early-retirement bloggers. Your readers get the exact SEPP payment under the IRS's amortization, annuitization or RMD method, checked against the IRS's own published examples. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Required Minimum Distribution (RMD) For credit unions, IRA custodians and financial advisers. Your readers get this year's required minimum distribution under the current IRS Uniform Lifetime Table. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Pension Lump Sum vs. Annuity For HR and benefits teams, and financial advisers. Your readers get the implied payout rate on a pension lump-sum offer, and the age at which the invested lump sum runs out paying the same income as the pension. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Inherited IRA Distribution For financial advisers and estate-planning sites. Your readers get a level distribution schedule that empties an inherited IRA by its SECURE Act deadline, plus the heir's own tax on each withdrawal. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Roth Conversion For financial advisers and tax preparers. Your readers get what a Roth conversion actually costs this year — marginal rate, IRMAA and ACA subsidy cliffs included, not just the headline tax bracket. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` ## Early-Retirement Bridge Planner For financial advisers and early-retirement (FIRE) bloggers. Your readers get a year-by-year plan for funding retirement before 59½ — taxable brokerage, a Roth ladder, a 72(t) SEPP, or a blend of the three. It loads in under a tenth of a second, sets no cookies, and sends nothing your readers type anywhere — the maths runs entirely in their browser. ` addEventListener('message',function(e){if(!e.data||!e.data.savingslastHeight)return;var fs=document.querySelectorAll('iframe[src*="savingslast.com/embed"]');for(var i=0;i` 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. --- # Methodology > The exact arithmetic behind every SavingsLast calculator: the monthly loop, the tax gross-up, the solver, and an honest list of what the model ignores. Source: https://savingslast.com/methodology/ Markdown: https://savingslast.com/methodology.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Most retirement calculators won't tell you what they are doing. This page will, in enough detail that you could rebuild ours in a spreadsheet and get the same answer to the dollar. ## The simulation Every calculator on this site runs the same loop, one month at a time, inside your browser. Nothing you type is sent to us or to anyone else. Each month, in this order: 1. The balance earns one month of growth. 2. The withdrawal comes out. 3. Next month's withdrawal is increased a little for inflation. The annual return you enter is converted to a monthly rate with (1 + r)1/12 − 1, not by dividing by twelve. On a 5% return that is 0.4074% a month rather than 0.4167%. The gap looks trivial and it is, but over 360 months it compounds into real money, and getting it right costs nothing. Inflation is converted the same way, so a 2.5% figure raises your withdrawal by exactly 2.5% over twelve months rather than 2.53%. ## One month, worked through Take $500,000 at 5% growth, withdrawing $3,000 a month, with 2.5% inflation and no tax. - Month one: $500,000 grows by 0.4074% to **$502,037.06**. - The $3,000 withdrawal leaves **$499,037.06**. - Month two's withdrawal rises to **$3,006.18**, and the loop repeats. Run that forward and the money lasts **204 months — exactly 17.0 years**, with $758,304 withdrawn along the way. That is the number the calculator on the homepage shows, because it is running this same code. ## How tax is handled The tax field assumes you want to *keep* the amount you typed. So the calculator grosses the withdrawal up: it removes withdrawal ÷ (1 − tax) from the balance. Asking for $3,000 a month at a 22% rate actually pulls **$3,846.15** out, leaving you the $3,000 you asked for. This is a flat rate applied to the whole withdrawal. It is right for a traditional 401(k) or IRA, where every dollar out is ordinary income. It is wrong, and deliberately conservative, for a taxable brokerage account, where you are only taxed on the gain — for those, entering roughly half your capital gains rate gets closer. For a Roth, enter zero. ## The "how much can I withdraw" figures The three boxes under each result are solved rather than estimated. We search for the largest starting withdrawal that still survives 20, 25 or 30 years under the same return and inflation you entered, using 40 rounds of bisection between $0 and your full balance. That converges to well under a cent. On $500,000 at 5% and 2.5%, the 30-year answer is $1,961 a month. We solve it rather than applying the 4% rule because the 4% rule is a finding about one country's market history, not a formula. Your numbers deserve your numbers. ## Where the simulation stops If the balance survives 1,200 months — a hundred years — we stop and report "indefinitely". At that point growth is outrunning your inflation-adjusted withdrawals and the exact year is meaningless. ## What we won't let you type Returns and inflation accept −20% to 100%, and tax accepts 0% to 99%. Anything outside that reverts when you leave the field. The limits exist because unbounded inputs produce confident nonsense. A 2000% return will happily report that your money lasts forever, which is true of the arithmetic and useless to you. We set the range wider than most — CalcXML allows −12% to 12%, Dinkytown 0% to 20% — because testing a genuinely bad decade at −15% is a reasonable thing to want, and refusing it would be patronising. Above 100% you are no longer planning, you are typing. ## What this model does not do This is the section worth reading twice. Every calculator makes these compromises; most don't list them. - **It assumes the same return every year.** This is the big one. Real markets are lumpy, and two retirees with identical average returns can end up in completely different places depending on whether the bad years land early or late. Withdrawing from a portfolio that just fell 30% locks in the loss permanently. A steady-return model cannot see that risk, and it is optimistic because of it. Treat the result as a baseline, then assume you need a margin on top. - **It ignores fees.** A 1% advisory fee is simply a 1% lower return here, so subtract it from the figure you enter. Over thirty years that is not a rounding error. - **The tax field is a single flat rate.** No brackets, no standard deduction, no state tax, no capital gains treatment, and no modelling of how withdrawals push more of your Social Security into taxable income — the "tax torpedo", which can make a 22% bracket behave like 40%. - **The general calculators do not model required minimum distributions.** The account-specific ones now do — see below. On this page, and on the amount and age pages, no RMD is applied, so a plan that quietly underspends a traditional account will look better here than it would in reality. - **It has no view on long-term care.** A meaningful minority of retirees face costs of $60,000 to $120,000 a year. That is not absorbable from most portfolios and needs insuring or ring-fencing separately. - **It assumes you keep withdrawing on schedule.** Real retirees adjust. Trimming spending roughly 10% after a bad year historically adds years of portfolio life, and this model gives you no credit for that flexibility. - **Amount-page tables assume 2.5% inflation and no tax**, so they are comparable across pages. The calculator on the same page is the one to trust for your own situation. ## The Social Security calculators The claiming pages use the Social Security Administration's actual formulas rather than an approximation. Claiming before full retirement age reduces the benefit by five-ninths of 1% per month for the first 36 months, then five-twelfths of 1% for every month beyond. Delaying past full retirement age adds two-thirds of 1% a month — 8% a year — and stops dead at 70. With a full retirement age of 67, that works out to **70% of your benefit at 62 and 124% at 70**. Break-even ages are found by accumulating both streams month by month with your cost-of-living assumption applied, and optionally compounding the payments you would have invested. ## Figures we quote across the site The average retired-worker benefit we use is about $1,976 a month, from the Social Security Administration. The 4% rule comes from William Bengen's 1994 study in the *Journal of Financial Planning* and the 1998 Trinity Study; both examined U.S. market history and asked what withdrawal rate never failed over 30 years, which is a different question from what rate is optimal. IRA and 401(k) distribution rules follow IRS Publication 590-B. State tax treatment is reviewed annually and each state page carries its own review date and a link to the relevant agency. Long-run averages we lean on: U.S. inflation has run about 2.5% over thirty years, and a 60/40 portfolio has historically returned roughly 6–8% nominal. Neither is a promise about the next thirty years. ## Rules the account calculators apply The 401(k), IRA, 403(b), 457(b), TSP, SEP, SIMPLE, Roth, HSA, inherited IRA, rule-of-55 and early-withdrawal pages apply the rules that actually govern those accounts. They used to describe them and compute a generic answer, which meant the 457(b) page explained that no penalty applies and then produced arithmetic identical to the 401(k) page, where it does. That is fixed. - **The 10% early-withdrawal penalty** is added to the tax gross-up for every distribution taken before 59½, so reaching a given after-tax income costs more of the balance. It stops automatically the month you reach 59½ rather than at the end of that year. - **It is not applied** on the 457(b) page (governmental plans carry no penalty after separation at any age), on the rule-of-55 page, or on the inherited IRA page — in each case because the exception is the subject of that calculator. - **The rule of 55 is not offered on the IRA pages**, because it does not apply to IRAs. - **The 72(t) page does not run this drawdown model at all.** It computes the payment under the three methods in IRS Notice 2022-6, from the life expectancy and mortality tables in force since 2022. Every build checks that engine against ten examples the IRS has published. Each result shows the table it read, the factor it found, the rate it used and the division it did. - **The HSA page** applies a 20% penalty before 65 rather than 10%, and treats qualified medical withdrawals as tax-free. - **Required minimum distributions** begin at 73 on every traditional account, using the IRS Uniform Lifetime Table in force since January 2022. Each year the calculator takes the larger of your chosen withdrawal and the required minimum, so a plan that underspends is corrected upward the way the IRS would correct it. You must enter an age for this to apply. - **Roth IRAs get no RMD at all** and ignore the tax field, which is disabled on that page. Two honest limits. The SIMPLE IRA penalty is 25%, not 10%, within the first two years of participation, and the calculator applies the 10% figure. And an RMD you do not spend can be reinvested in a taxable account — this model removes it from the balance, which is correct for "how long does this account last" and pessimistic for how long your total wealth lasts. ## Why another calculator gives you a different number Two honest calculators can disagree by years on the same inputs, because "how long will it last" is not one calculation. It depends on choices each tool makes and mostly does not tell you about. We checked ours against the others on **$500,000, $3,000 a month, a 5% return and 2.5% inflation**, no tax: | Calculator | Result | What it assumes | | --- | --- | --- | | **SavingsLast** | **17 years 0 months** | Monthly loop, growth then withdrawal, inflation compounded monthly | | CalcXML | ~17 years | The same four levers, including tax | | Dinkytown (KJE) | 16 years 11 months | Annual withdrawals with an annual inflation step-up | | Bengen / Trinity convention | 17.00 years | Annual compounding, withdrawal taken at the start of the year | | calculator.net | 23 years 3.5 months | No inflation field at all | **The one that matters is inflation.** A calculator that ignores it will tell you your money lasts about six years longer, on these numbers, than one that does not. That is not a rounding difference — it is the difference between a plan that works and one that quietly fails in your late seventies. If a tool has no inflation box, its answer is the answer to a different question. The rest is convention, and it is worth a month or two either way. We withdraw monthly rather than annually and let the money keep earning until it is taken, which lands us one to two months ahead of Dinkytown on the same inputs. Neither is more correct; ours matches how a retiree actually draws income, and it agrees with the classic Bengen and Trinity annual convention almost exactly. Two other differences worth knowing about when you compare tools: whether the withdrawal is taken at the start or the end of each period, and whether a tax rate reduces your growth or grosses up your withdrawal. We do the latter, which is set out under "How tax is handled" above. ## Found a mistake? Tell us and we will fix it. The calculations here are deterministic and testable, so a bug is a bug rather than a matter of opinion — the engine is checked on every deploy against known results, including the $500,000 example above. Write to [hello@savingslast.com](mailto:hello@savingslast.com). --- # Privacy Policy > SavingsLast privacy policy. Source: https://savingslast.com/privacy/ Markdown: https://savingslast.com/privacy.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Calculator inputs are processed in your browser and are not transmitted to or stored by us. The numbers you enter may appear in the page URL so you can bookmark or share a result; that is local to your device unless you share the link. We use privacy-respecting analytics to count visits. Advertising may be served by Google AdSense and other networks, which may use cookies to personalise ads; you can opt out at [Google Ads Settings](https://adssettings.google.com) and [aboutads.info](https://optout.aboutads.info). Some links are affiliate links; we may earn a commission at no cost to you. We also use [Microsoft Clarity](https://clarity.microsoft.com/), which records anonymised page interactions (clicks, scrolling, and how pages are used) to help us improve the site. Clarity is configured with strict masking, so the figures you type into a calculator are hidden from these recordings and are not sent to Microsoft. Clarity sets cookies; see the [Microsoft Privacy Statement](https://privacy.microsoft.com/privacystatement). We also use [Google Analytics](https://marketingplatform.google.com/about/analytics/) to count visits and see which pages people arrive on. The numbers you type into a calculator appear in the page address so you can bookmark a result, and we deliberately strip that part of the address before it reaches Google, so your figures are not sent there. Google Analytics sets cookies; you can opt out with the [Google Analytics opt-out add-on](https://tools.google.com/dlpage/gaoptout). If you use our calculators through an AI assistant connected to our [MCP endpoint](https://savingslast.com/ai/), the figures the assistant sends are computed on our hosting provider's servers and returned. We do not log or store them; the provider keeps ordinary request metadata, such as the requesting address, to operate the service. Contact: hello@savingslast.com. --- # SavingsLast for AI assistants > Connect Claude, ChatGPT, Cursor or any MCP client to every SavingsLast calculator at savingslast.com/mcp. Free, no key. Plus llms.txt and markdown for every page. Source: https://savingslast.com/ai/ Markdown: https://savingslast.com/ai.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. Every calculator on this site is an MCP tool, and every page has a plain-text twin. Free, no key, no sign-up. Use it, cite it, build on it. ## Connect an MCP client The endpoint is `https://savingslast.com/mcp`: Model Context Protocol over Streamable HTTP, no authentication, no session to manage. ### Claude Claude.ai and the desktop app: Settings, Connectors, Add custom connector, paste the URL. Claude Code: ``` claude mcp add --transport http savingslast https://savingslast.com/mcp ``` ### ChatGPT Settings, Connectors, Create, paste the URL. The server carries the `search` and `fetch` tools ChatGPT's deep research expects, plus the calculators. ### Cursor, Windsurf, VS Code, Gemini CLI and the rest Any client that reads a JSON config: ``` { "mcpServers": { "savingslast": { "url": "https://savingslast.com/mcp" } } } ``` ## The calculator tools Each one is the engine behind the page of the same name, and each result carries a link to that page with the inputs filled in. | Tool | What it does | | --- | --- | | `how_long_will_money_last` | Month-by-month drawdown of a retirement balance: how many years the money lasts at a monthly withdrawal that rises with inflation, the age it runs out, the odds of being alive then, and the most that could be withdrawn to last 20, 25 or 30 years. | | `sustainable_withdrawal` | The largest starting monthly withdrawal, rising with inflation, that a balance can support for a chosen number of years at a given return, inflation and tax rate. | | `sepp_72t_payment` | The annual 72(t) substantially equal periodic payment under all three IRS methods in Notice 2022-6: fixed amortization, fixed annuitization and required minimum distribution, using the 2022 life-expectancy and mortality tables. | | `sepp_72t_lock_in_end` | The date a 72(t) series may be changed without the recapture penalty: the later of five years from the first payment and the owner reaching 59 1/2, computed in calendar months the way the IRS does (six months after the 59th birthday, not 0.5 years). | | `rmd_calculate` | The required minimum distribution for a year from a traditional IRA, 401(k) or similar account: the prior 31 December balance divided by the IRS Uniform Lifetime Table factor at the age reached that year, with the required beginning age from the birth year (72, 73 or 75 under SECURE 2.0), the due date, and a ten-year projection at an assumed return. | | `federal_tax_estimate` | A retiree's federal income tax for tax year 2026: the taxable share of Social Security (the Publication 915 worksheet), the standard deduction with the 65-plus additions and the senior deduction phase-out, ordinary brackets, the 0/15/20% stack for long-term gains and qualified dividends, the 3.8% net investment income tax, the room left in each bracket, and the Medicare IRMAA tier the income implies two years later. | | `roth_conversion_cost` | What converting an amount from a traditional IRA or 401(k) to a Roth costs in federal tax for 2026, on top of everything else that year, including the extra Social Security it makes taxable and the senior deduction it phases out. | | `bridge_to_59_half` | How an early retiree pays for the years between leaving work and 59 1/2, one year at a time, under three strategies: taxable first with a Roth conversion ladder, a 72(t) series on a carved-off IRA, or a blend. | | `pension_lump_sum_vs_annuity` | Compares a pension's lump-sum offer with its monthly annuity: the payout rate the pension implies, the age the invested lump sum runs out paying the same amount, the steady return the lump sum must earn to match the pension to a planning age, and the odds of being alive at each point on the IRS unisex mortality table, with a verdict. | | `inherited_ira_schedule` | A withdrawal schedule for a non-spouse heir under the 10-year rule: the level annual withdrawal that empties the account exactly at the deadline, year-by-year balances and tax at a flat rate, and, when the owner had already started required distributions, the annual minimums for years one to nine under the 2024 final regulations (Single Life Table factor reduced by one each year). | | `social_security_claiming` | What claiming Social Security at each age pays, from 62 to 70, using the statutory reduction (5/9 of 1% a month for the first 36 months early, then 5/12 of 1%) and delayed retirement credits (2/3 of 1% a month to 70); the cumulative benefit by age with an optional COLA; the break-even ages between claiming ages; and optionally the case where early payments are invested at a return. | | `state_retirement_taxes` | How a US state taxes retirement income: Social Security, pensions, and IRA and 401(k) withdrawals, plus the estate or inheritance tax, sales and property tax levels, and an estimated effective state income tax on $40,000 of withdrawals for a 65-year-old single filer. | ## The page tools The whole site, searchable: every calculator page's explanation and FAQ, the guides, the Social Security pages, the state retirement-tax pages and the reference pages. | Tool | What it does | | --- | --- | | `search` | Full-text search across every page on savingslast.com: the calculators, the guides, the Social Security pages, the state retirement-tax pages and the reference pages. | | `fetch` | The full text of one savingslast.com page as markdown, by id from search, by slug, or by URL. | | `list_pages` | Every page on savingslast.com with its URL, title, description and section, optionally one section only. | Every page is also an MCP resource, so a client that reads resources sees the same list. ## Plain text for language models - [/llms.txt](https://savingslast.com/llms.txt): an index of every page with a one-line description. - [/llms-full.txt](https://savingslast.com/llms-full.txt): every page in one file. - Any page as markdown: add `.md` to its path, for example [/72t-distribution-calculator.md](https://savingslast.com/72t-distribution-calculator.md). Each page also links to its twin with `rel="alternate"`. ## Crawling [robots.txt](https://savingslast.com/robots.txt) allows every crawler, and names the AI crawlers so there is no doubt. There is nothing private here to protect, and the site exists to be found. ## Try it from a terminal ``` curl -s -X POST https://savingslast.com/mcp \ -H 'Content-Type: application/json' -H 'Accept: application/json, text/event-stream' \ -d '{"jsonrpc":"2.0","id":1,"method":"tools/call","params":{"name":"sepp_72t_payment","arguments":{"balance":400000,"age":50,"interest_rate":4}}}' ``` That is the IRS's own example: $400,000 at 50 with a 4% rate. The fixed amortization figure comes back as $21,102, which is the number the IRS publishes. ## Terms Free for any use, including commercial, with attribution: link to the page URL each result carries. Everything is an educational estimate, not financial, tax or investment advice. Inputs sent to the endpoint are computed and returned, not logged or stored by us. 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.