Retirement Savings Longevity Calculator
Determine how long your retirement savings will last based on your withdrawal rate, investment returns, and inflation.
Results
Visualization
How It Works
Retirement savings longevity depends on the balance between withdrawals, investment returns, and inflation. The famous "4% rule" suggests withdrawing 4% of your initial balance annually (adjusted for inflation) to last ~30 years.
The Formula
Real Return = (1 + Nominal Return) / (1 + Inflation) − 1
Each month: Balance = Balance × (1 + Monthly Real Return) − Withdrawal
Each month: Balance = Balance × (1 + Monthly Real Return) − Withdrawal
Variables
- Real Return — Investment return minus inflation — your actual purchasing power growth
- 4% Rule — Withdraw 4% of initial balance per year, adjusted for inflation — historically lasted 30 years
- Net Draw — Monthly withdrawal minus Social Security and other guaranteed income
Example
$500,000 savings, $3,000/month need, $1,800 Social Security: Net draw = $1,200/month (2.88% rate). At 5% return and 3% inflation: savings last 50+ years.
Tips
- The 4% rule is a guideline, not a guarantee — adjust based on market conditions and remaining lifespan.
- Social Security and pensions reduce how much you need from savings — maximize those first.
- Keep 1-2 years of expenses in cash/short-term bonds to avoid selling stocks during downturns.
- Consider a "bucket strategy" — near-term expenses in safe assets, long-term in growth investments.
- Required Minimum Distributions (RMDs) start at 73 — factor these into your withdrawal plan.