How Long Will My Retirement Savings Last?
It’s the million-dollar question (sometimes literally): how long will my retirement savings last? If you’ve ever stayed up at night wondering if you’ll have enough, you’re not alone. Today, we’ll break down the key factors, popular strategies, and smart tools that can help you plan for a worry-free retirement.
Why It's So Hard to Answer This Question
At first glance, you’d think this would be simple math. But it’s anything but simple. Here’s why:
- Lifespan uncertainty: You don’t know if you’ll live to 75 or 105. That’s a 30-year range to plan for!
- Market performance: The stock market doesn’t deliver smooth, predictable returns. Your portfolio will rise and fall.
- Inflation: What costs $50,000 per year now may cost over $100,000 in 30 years.
- Surprises: Health care, home repairs, family emergencies... life happens.
That’s why we created Retirementize — to help you model and visualize your financial future without needing a finance degree.
The Core Factors That Determine How Long Your Savings Last
Total Retirement Savings
From your 401(k), RRSP, Roth IRA, TFSA, pensions, to taxable accounts — the more you have, the more secure you’ll feel. A retirement savings magic number varies per person, but many target $1 million or more. Curious? Use our Retirementize online income calculator to plug in your numbers!
Annual Withdrawal Amount
The famous 4% rule is a classic benchmark. But is it right for you? A $1M nest egg means $40K a year by that rule, but today’s low-interest rates and market uncertainty mean you may want a more flexible plan — like dynamic withdrawals, which you can easily model at Retirementize.
Expected Investment Returns
Historically, balanced portfolios returned 5-7% after inflation. But that’s history — not a guarantee. Retirementize lets you test average, pessimistic, and optimistic scenarios to see how market conditions might affect you.
Inflation
With inflation at 3%, $50,000 today becomes $90,000 in 25 years. That’s why budgeting (see our retirement budgeting guide) and proper modeling are key!
Retirement Duration
Plan for longevity — at least to age 90 or 95. See Canadian retirement age or Social Security rules if you're coordinating benefits.
Popular Strategies To Stretch Your Savings
The 4% Rule
Simple but rigid. Useful for a quick estimate, but Retirementize shows its limitations in volatile markets. Learn more in our 4% rule deep dive.
Dynamic Withdrawals
Adjusting spending based on market performance keeps you from overspending in bad years. Retirementize lets you test these scenarios easily!
Bucket Strategy
Divide funds into near-term cash, mid-term bonds, and long-term stocks. It’s a buffer against market swings.
Annuities
Consider annuities for guaranteed income. (See what is an annuity?)
Delaying Government Benefits
Delaying CPP, OAS, or Social Security can increase your monthly payouts significantly. See 10 reasons to delay CPP.
Real-Life Examples
Example 1: John and Mary retire at 60 with $1.2M, spend $55K/year, balanced portfolio. Our tool shows they have an 85% chance of their money lasting to age 95, assuming 5% returns.
Example 2: Susan retires at 67 with $800K, plans on $40K/year, includes CPP/OAS. Retirementize shows a solid 90% chance of success — and room for discretionary spending!
What If Your Plan Falls Short?
- Downsize your home, consider rental properties for retirement income.
- Part-time work (see best part-time jobs in retirement).
- Cut costs — think frugal retirement.
- Delay retirement or benefits.
Fun Facts
- The average U.S. retirement lasts about 20 years, but 1 in 3 people live 30+ years past retirement age. (Source: SSA)
- Only 55% of pre-retirees have tried to calculate how much they need to retire. (Source: EBRI)
- Inflation cut U.S. retirees' purchasing power by about 40% over the past 25 years. (Source: BLS)
- 40% of retirees underestimate health care costs. (Source: Fidelity)
- More than 20% of people over 65 are still paying off mortgages. (Source: Consumer Financial Protection Bureau)
Conclusion
There’s no one-size-fits-all answer to “how long will my retirement savings last?” — but with smart planning and the right tools, you can take control. Don’t let uncertainty rob you of peace of mind. Model your plan today with Retirementize and make your retirement dreams a reality!