Draw a fixed amount each month and find out how long your savings hold out.
A 'how long will my savings last' calculator estimates how many years a nest egg can support your withdrawals, given your balance, how much you take out, the return your money earns, and inflation eating into your spending power.
Your savings shrink as you withdraw but grow as they earn a return, so the balance lasts far longer when the return keeps pace with what you take out. Inflation works the other way: to buy the same things each year you must withdraw a little more, which drains the balance faster. A realistic estimate has to account for all three, which is why a simple 'balance รท withdrawal' figure is usually too optimistic.
Two retirees with the same average return can get very different outcomes depending on when bad years hit. A market drop in the first few years of withdrawals, while the balance is largest and you're still selling to fund spending, does lasting damage, because there's less left to recover when returns bounce back. This is why many retirees keep a cash buffer and stay flexible on spending in down years rather than relying on an average.
It depends on your balance, withdrawal rate, return, and inflation. Enter them above for a year estimate, and remember a lower withdrawal rate stretches savings dramatically.
A common guideline is around 4% of the starting balance per year, adjusted for inflation, to last roughly 30 years. Lower rates are safer, especially for early retirees.
Yes. At 3% inflation, your spending needs roughly double over 24 years, so ignoring it can overstate how long savings last by many years.
See the exact formula and a worked example on our methodology page.