Planning for retirement isn’t just about how much you save, it’s about how long your money will last. Whether you retire with $500,000, $1 million, or $2 million, the lifespan of your savings depends on spending, investment returns, Social Security timing, healthcare costs, and the economy.

 

This up-to-date guide breaks it all down using current 2024–2025 retirement research, including revised withdrawal-rate assumptions. You’ll also find helpful callouts, retirement tips, and a section on how Walters Financial Wellness can support your long-term financial health.

Assumptions Used In This Guide

1. Recent retirement research has changed the old “4% rule.” Instead of a fixed 4% withdrawal every year, many experts now recommend: A safer starting withdrawl rate of 3.7%-4.0%, adjusted for inflation over time. This helps protect against market downturns and rising long-term costs.
2. This guide uses a 30-year retirement (age 65–95)
3. This guide assumes that a client has a balanced portfolio of stocks & bonds
4. This guide uses the Average Social Security retirement benefit (2025): ~ $1,976/month (~$23,700/year)

 

• Callout: Adjusting spending slightly during down markets improves portfolio longevity

How Long Could $500,000 Last in Retirement?

1. Estimated sustainable withdrawal: $18,500–$20,000 per year (3.7–4% rule)
2. Paired with Social Security, many retirees would expect $40,000–$45,000 per year total income.

 

What this supports:

• Modest lifestyle
• Paid-off housing
• Limited travel
• Low healthcare or long-term care costs

 

• Callout: If you need $55K–$70K+ per year, a $500K nest egg may run out in 10–15 years, depending on market behavior and healthcare costs.

 

Best for: 

Retirees with simple lifestyles, low expenses, or added part-time income.

How Long Could $1,000,000 Last in Retirement?

1. Estimated sustainable withdrawal:$37,000–$40,000 per year
2. With Social Security, that’s about $60,000–$65,000 per year in retirement income.

 

What This Supports:

• Comfortable but not extravagant
• Moderate travel or hobbies
• Cash cushion for healthcare and home repairs

 

• Callout: With moderate spending, $1M can realistically last 30+ years,  especially if withdrawals adjust slightly during market downturns.
• Caution: Consistently spending $80K–$90K+/year may deplete the portfolio faster.

How Long Could $2,000,000 Last in Retirement?

1. Estimated sustainable withdrawal:$74,000–$80,000 per year
2. With Social Security, that becomes $95,000–$110,000+ per year.

 

What This Supports:

• Travel, hobbies, home upgrades
• More flexibility in spending
• Higher protection against inflation and long-term care risks

 

• Callout: A $2M nest egg typically lasts 30+ years, even with higher discretionary spending, as long as withdrawals remain close to the 3.7–4% guideline.
• Caution: Spending above $120K–$140K per year raises the risk of early depletion.

Why There’s No Single Answer

Even with strong planning, the number of years your money lasts depends on these critical factors:

• Sequence-of-Returns Risk: Market downturns early in retirement can shorten portfolio life dramatically.
• Healthcare & Long-Term Care Costs: Expenses rise sharply in the final years of life. Many retirees underestimate the cost of home health aides, assisted living, and nursing care.
• Inflation & Taxes: Cost-of-living increases affect spending. Tax-efficient withdrawal planning can extend portfolio life by years.
• Lifestyle Choices: Travel, home upgrades, helping adult children, and hobbies all affect sustainability.

How Walters Financial Wellness Can Help You

Retirement shouldn’t feel like a guessing game. Walters Financial Wellness financial counseling services help you:

 

✔ Build a Personalized Retirement Income Plan: We analyze your spending, goals, savings, Social Security timing, and risk tolerance.

✔ Determine Your Safe Withdrawal Strategy: Whether traditional, dynamic, bucket-based, or hybrid, we find what works for your lifestyle.

✔ Optimize Taxes & Social Security: Strategy makes a huge difference in how long your savings last.

✔ Plan for Healthcare & Long-Term Care Costs: Forecasting these costs protects your retirement years.

✔ Adjust Your Plan Regularly: Life changes, your plan should too. Ongoing support helps keep your retirement on track.

 

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