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Returns stretch it
Money you haven't spent yet keeps growing, so a 5% return can add years compared with cash.
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Inflation shrinks it
At 3% a year, $3,000 of groceries and bills costs about $4,000 after 10 years.
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Subtract Social Security
Enter only what you'll take from savings, after Social Security and any pension.
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Plan for a long life
Running out at 85 is a real risk if you live to 95. Build in extra years.
How long savings last at a glance
Years until the money runs out with a 5% yearly return and withdrawals that rise 3% a year. Notice that doubling both the savings and the withdrawal gives the same answer: it's the withdrawal as a share of savings that matters.
Years your savings last
| Savings | $2,000/mo | $3,000/mo | $4,000/mo | $5,000/mo |
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| $250,000 | 11 yrs | 7 yrs | 5 yrs | 4 yrs |
| $500,000 | 27 yrs | 16 yrs | 11 yrs | 9 yrs |
| $1,000,000 | 86 yrs | 40 yrs | 27 yrs | 20 yrs |
The 4% rule, in plain numbers
A common starting point is to take 4% of your savings in the first year, then raise that amount with inflation. On $500,000 that's $20,000 the first year, about $1,667 a month. On $1 million it's $40,000, about $3,333 a month. Looking back at U.S. market history, that pace has usually lasted around 30 years. It's a rule of thumb, not a promise, and a weak market in the first few years of retirement is the biggest risk to it.
If the calculator says your money runs out sooner than you'd like, the levers are the same ones you'd expect: take a little less each month, delay retirement or Social Security to raise your benefit, or keep some savings invested for growth instead of all in cash.
Common questions
How long will $500,000 last in retirement?
With a 5% yearly return and withdrawals that rise 3% a year for inflation, $500,000 lasts about 27 years at $2,000 a month, about 16 years at $3,000 a month and almost 12 years at $4,000 a month.
How long will $1 million last in retirement?
Using the same 5% return and 3% inflation, $1 million lasts about 40 years at $3,000 a month, about 27 years at $4,000 a month and about 20 years at $5,000 a month.
What is the 4% rule?
The 4% rule says you can withdraw 4% of your savings in your first year of retirement, then raise that dollar amount with inflation each year, and your money has historically lasted about 30 years. On $1 million that's $40,000 the first year, or about $3,333 a month. It's a rule of thumb based on past U.S. market returns, not a guarantee.
What return should I assume?
Retirees usually hold a mix of stocks and bonds, so many plans use something between 4% and 6% a year. A lower number is the safer choice for planning. Returns also come in uneven years, and a bad market early in retirement can shorten how long money lasts.
Should I include Social Security?
Enter only the amount you'll take from savings each month. If you need $4,500 a month and Social Security pays $2,000, enter $2,500 as your withdrawal. Your estimated benefit is on your my Social Security account at ssa.gov.
Sources and further reading
Results are estimates that assume a steady return every year. Real markets go up and down. This is not financial advice.