How Long Will My Money Last in Retirement?

One of the most pressing questions retirees face is: How long will my money last? Whether you’re approaching retirement or already in it, this concern isn’t just about numbers—it’s about security, peace of mind, and living life on your terms. The good news is, with careful planning and smart strategies, you can create a retirement income that lasts as long as you do.

At SafeMoney.com, we help everyday people gain clarity around retirement finances. Let’s walk through what affects how long your money will last, how to calculate it, and most importantly—how to make it last.

Understanding the Retirement Longevity Dilemma

The biggest challenge in retirement planning is longevity risk—the risk of outliving your money. According to the Social Security Administration, a 65-year-old man today can expect to live, on average, to age 84. For a woman, it’s 87. But one out of every three retirees will live past 90, and one out of seven will live past 95.

That’s why simply retiring with a large nest egg isn’t enough—you need a strategy to stretch it over an uncertain future.

Key Factors That Impact How Long Your Money Will Last

Here are the top variables that can either shorten or extend the life of your retirement savings:

1. Your Retirement Spending Habits

How much you withdraw each year is a critical factor. The more you spend, the faster your savings may deplete.

Tip: The traditional 4% rule (withdrawing 4% of your portfolio annually) has come under scrutiny. Many advisors now recommend a more flexible approach depending on market conditions and personal needs.

2. Inflation

Inflation eats away at your purchasing power. Even modest inflation—say 3%—can dramatically increase your expenses over a 20- to 30-year retirement.

Safe Money Insight: Consider inflation-protected income sources, such as annuities with cost-of-living adjustments or delaying Social Security benefits.

3. Market Volatility

Retirees are especially vulnerable to sequence-of-returns risk—the risk of experiencing poor market returns early in retirement.

Solution: Create a buffer with stable, guaranteed income streams that aren’t tied to market performance.

4. Health Care Costs

According to Fidelity, the average 65-year-old couple retiring today will need around $315,000 just for health care. Long-term care is another expense that can quickly drain assets.

Proactive Planning: Evaluate options like long-term care insurance or hybrid policies to cover unexpected costs.

5. Life Expectancy

It’s hard to predict how long you’ll live, but planning for a longer-than-average lifespan can prevent shortfalls later on.

How to Calculate How Long Your Money Will Last

There are many retirement calculators online, but understanding the basic math helps:

1. Start with your total savings.
2. Subtract annual withdrawals.
3. Factor in investment growth and inflation.

Let’s say you have $1 million saved, withdraw $50,000 per year, and your investments grow at 5% annually with 3% inflation. Depending on your spending discipline and market performance, your money could last between 20 to 30+ years.

But that’s a rough estimate. A better approach is to work with a retirement income professional who can tailor the numbers to your life.

Strategies to Help Your Money Last Longer

Making your money last in retirement isn’t just about cutting expenses. It’s about building a sustainable income plan that balances growth, safety, and liquidity.

1. Create a Retirement Paycheck

You don’t stop paying bills in retirement—so why stop receiving a paycheck? Use tools like fixed indexed annuities or income riders to create lifetime income streams you can’t outlive.

2. Segment Your Assets by Time Horizon

The “bucket strategy” divides your savings into short-, medium-, and long-term needs:

• Short-term: Cash and CDs for the first 1–3 years
• Mid-term: Bonds or conservative funds for 3–10 years
• Long-term: Growth investments for years 10+

This method reduces the risk of having to sell investments in a down market.

3. Delay Social Security if Possible

For every year you delay past full retirement age (up to age 70), your benefit grows by 8%. This larger guaranteed income can ease the pressure on your other assets.

4. Limit Withdrawals During Down Markets

When the market is down, try to withdraw less. If you have a buffer asset—like an annuity or cash reserve—you can use it to avoid selling stocks at a loss.

The Role of Annuities in Making Money Last

Annuities often get overlooked, but they can be a powerful piece of your retirement puzzle.

• Fixed Indexed Annuities offer growth potential with downside protection.
• Lifetime Income Riders ensure you’ll always receive a paycheck—even if the underlying account runs dry.
• Deferred Income Annuities provide guaranteed future income, often starting at age 80 or later to cover longevity risk.

Annuities aren’t right for everyone, but in the right situation, they can take the guesswork out of longevity planning.

Why SafeMoney.com Recommends Working with a Trusted Advisor

Figuring out how long your money will last isn’t a DIY project. It takes professional insight, tools, and experience. At SafeMoney.com, we connect you with vetted, independent financial professionals who specialize in retirement income strategies.

Our independent network of financial professionals can help you:

• Analyze your current savings and income sources
• Identify gaps in your retirement plan
• Design a personalized income strategy based on your goals

Best of all, we focus on safe money solutions that prioritize your financial security—not just market returns.

Final Thoughts: Will Your Money Last?

There’s no one-size-fits-all answer to “how long will my money last?” But with smart planning, the right tools, and a clear income strategy, you can retire confidently—without the fear of running out.

If you’re uncertain about how long your savings will stretch, now is the time to get a second opinion.

You’ve worked hard for your money. Let us help make it work for you—for life.

🧑‍💼Authored by Brent Meyer, founder and president of SafeMoney.com, with over 20 years of experience in retirement planning and annuities.

Disclaimer: This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Annuities are insurance products and may not be suitable for all individuals. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Always consult with a licensed financial professional before making investment or retirement planning decisions. SafeMoney.com and its affiliates are not responsible for individual outcomes based on the information provided herein.