Model how long your retirement savings will last with monthly withdrawals and investment growth.
Your Situation
Years Your Savings Will Last
0
Depletion Date
2050
Total Withdrawn
$0
Initial Annual Withdrawal
$0
Status
Sustainable
Warning: Based on your withdrawal rate, your savings may be depleted before a typical retirement. Consider reducing withdrawals or increasing investment returns.
Disclaimer: This is a projection based on consistent returns and inflation. Actual results will vary. Market volatility, unexpected expenses, and other factors affect longevity. Not financial advice.
Portfolio Longevity in Retirement
One of the biggest concerns in retirement is ensuring your savings last throughout your lifetime. This calculator helps you model whether your portfolio can sustain your desired withdrawal amount. It accounts for investment growth and inflation-adjusted withdrawals.
The calculation assumes your portfolio grows at your expected return rate each month, and you withdraw the monthly amount specified, which increases annually with inflation. As long as your portfolio remains positive, you have funds available.
The 4% Rule and Safe Withdrawal
Financial research suggests the "4% rule" provides a sustainable withdrawal strategy. This means withdrawing 4% of your initial portfolio in year one, then increasing that amount for inflation each subsequent year. A $1 million portfolio would support $40,000 in year one, about $41,200 in year two (with 3% inflation), and so on.
Strategies for Sustainability
To ensure your savings last, consider flexible withdrawal strategies: withdraw less in down market years and more in up years. Additionally, Social Security, pensions, or part-time work can supplement portfolio withdrawals, reducing the burden on your savings. Regular reviews of your plan help you adjust as circumstances change.
Frequently Asked Questions
How do I know if my retirement savings will last?
Use the 4% rule as a starting point: multiply your portfolio by 4% to get safe annual spending. A $1 million portfolio supports $40,000 annual spending. This calculator helps you model your specific amounts.
What is a safe withdrawal rate in retirement?
The 4% rule is the most widely cited safe withdrawal rate. You can withdraw 4% of your portfolio in year one, then adjust for inflation each year. This historically has a 90%+ success rate over 30-year retirements.
How does inflation affect my retirement spending?
Inflation erodes your purchasing power over time. If inflation is 3% annually, your $50,000 withdrawal in year one needs to increase to about $51,500 in year two to maintain the same purchasing power.
What if my portfolio runs out of money?
If your portfolio is depleted, you'll need to rely on other income sources like Social Security or a part-time job. This is why planning conservatively is important.
Should I adjust my withdrawals based on market performance?
Yes, many retirees use flexible strategies, reducing withdrawals in down market years and increasing them in up years. This helps preserve portfolio longevity.