Retirement Duration Guide: Will Your Money Last?
One of the biggest fears in retirement is outliving your savings. This calculator helps you stress-test your portfolio against different withdrawal rates, inflation scenarios, and investment returns.
Table of Contents
Safe Withdrawal Rates
The "4% Rule" suggests that you can withdraw 4% of your initial portfolio value in the first year of retirement, and adjust that amount for inflation each subsequent year, with a high probability of your money lasting 30 years.
- 3% Withdrawal: Ultra-conservative. Money will likely last forever.
- 4% Withdrawal: Standard recommendation.
- 5%+ Withdrawal: High risk of running out of money in 15-20 years.
The Silent Killer: Inflation
This calculator includes an Inflation Rate input because $50,000 today won't buy $50,000 worth of goods in 20 years. To maintain your standard of living, your withdrawals must increase every year.
Sequence of Returns Risk
Average returns don't tell the whole story. If the market crashes 20% in the first two years of your retirement, your portfolio may never recover, even if the market booms later. This is why many advisors recommend holding 2-3 years of living expenses in cash.