How Long Will My Money Last?

How Long Will My Money Last? A Guide to Making Your Savings Go Further

Whether you’re planning for retirement, managing a fixed income, or preparing for an unexpected life change, our calculator helps you answer a crucial question: how long will my money last?

This easy-to-use tool is designed to provide clear, insightful answers to help you better understand your financial future. With it, you can:

• Track how much of your savings remains after consistent monthly withdrawals

• Estimate how long your money is likely to last based on your current withdrawal habits

• Adjust your withdrawal rate to ensure your savings support you for the duration you need

The rest of this article offers practical tips and strategies to help you stretch your retirement savings and improve your financial stability.

Smart Strategies to Make Your Money Last Longer

Recent data shows that the average American retires with around $87,000 in savings. While some high earners may have significantly more, the majority of retirees are concerned about how to make their money last. With life expectancy now reaching over 73 years for men and nearly 80 for women, it’s more important than ever to plan wisely.

Since most retirees have limited or no new income, your savings must be structured to provide consistent support for years to come. Here’s how to approach it strategically:

1. Follow the 4% Rule (with Flexibility)

The 4% rule, popularized by financial advisor William Bengen, suggests withdrawing 4% of your savings annually to make your funds last at least 30 years. While this rule provides a helpful guideline, it isn’t one-size-fits-all.

In today’s market, adjusting your withdrawal rate between 3% and 5%—depending on inflation and market conditions—can provide better results. The original concept still holds: careful, measured withdrawals can significantly extend the life of your nest egg.

2. Monitor and Understand Your Spending

You can’t manage what you don’t measure. Start by tracking your expenses for a full month. This gives you a financial baseline and helps highlight unnecessary spending.

With the help of budgeting apps and online tools, you can easily monitor your cash flow and identify areas where you can save more without compromising your lifestyle.

3. Put Your Savings to Work

Your money shouldn’t sit idle. Keep it active with interest-bearing savings accounts, low-risk investments, or CDs. Compound interest can help grow your savings over time, especially when reinvested.

Consider splitting your funds between high-yield savings for accessibility and diversified portfolios for long-term growth. If you’re unsure where to begin, a financial advisor can help tailor an investment strategy that suits your needs and risk tolerance.

4. Withdraw Strategically

In volatile markets, reducing your withdrawal rate temporarily can protect your principal. Also, consider which accounts you withdraw from first to minimize your tax liability.

Some experts suggest pulling from taxable accounts before touching tax-deferred or tax-free accounts. In higher tax brackets, Roth IRA withdrawals may help reduce your overall tax burden. This approach requires careful planning, but it can extend your savings significantly.

5. Explore Additional Income Streams

Social Security provides a foundation, but it often falls short of covering all retirement expenses. Building passive income through investments, rental properties, or part-time consulting can supplement your savings.

Diversification remains key—bonds, annuities, dividend-paying stocks, and real estate can all play a role in supporting long-term income without exposing you to high risk.

6. Be Flexible and Reassess Regularly

Markets shift, inflation fluctuates, and personal needs change. Review your financial plan annually to stay on track. This includes rebalancing your investment portfolio, reviewing withdrawal rates, and accounting for healthcare or lifestyle adjustments.

A financial advisor can help you adapt your strategy over time, ensuring that you continue to meet your goals—even as life evolves.

In Summary: How Long Will My Money Last?

Planning for longevity means understanding how your financial decisions impact your future. With the right tools, smart withdrawal strategies, and a proactive approach to spending and investing, you can take control of your retirement journey.

Use our How Long Will My Money Last calculator to test different scenarios and create a plan that supports your goals with confidence.