Will your money last as long as you do, in about 2 minutes
How long the money lasts depends on three things: what you take out, what you assume it earns, and what inflation does to the first number every year.
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What this assumes
- Withdrawals are taken at the start of every month and raised once a year by the inflation assumption you selected.
- The remaining balance is credited monthly at the hypothetical annual rate you chose, evenly, year after year. Real markets do not move that way.
- Sequence of returns is not modeled. A run of poor years early in retirement can drain a balance far faster than any average suggests.
- Taxes, fees, required minimum distributions, health costs and long term care costs are not included anywhere in this calculation.
Reading your result
What this calculated
How many years the balance you entered could support your monthly withdrawal, with that withdrawal rising each year for inflation and the balance credited at the hypothetical return you selected, until it reaches zero.
Why the number matters
Running out is the risk retirees name first, and it is driven far more by how much comes out than by what the account earns. Putting a year on it turns a vague worry into something you can plan against.
What could change it
A smaller withdrawal stretches the years, a larger one shortens them quickly. Inflation, taxes, a poor stretch early in retirement, a health event or the need for care can all move the ending year sooner.
Reasonable next steps
Run it again with a lower withdrawal and a more cautious return, then measure that against a long life rather than an average one. If the years fall short, a written withdrawal plan is the next move.
This tool is educational and does not provide financial, investment, tax, legal or insurance advice. Results are estimates based only on the information you enter and the assumptions shown, they are not a quote, an offer of coverage or a promise of any outcome, and your actual situation will differ. Insurance guarantees are backed by the claims paying ability of the issuing insurance company. Speak with a licensed professional before acting on anything you see here.
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