Retirement Withdrawal Calculator — How Long Will My Money Last?
How long retirement savings last with inflation-linked withdrawals, the sustainable amount for your horizon, the never-touch-capital figure, pension income starting later and stress tests for lower returns and an early crash.
| Initial withdrawal rate | — |
|---|---|
| Balance at the end of the period | — |
| Sustainable withdrawal for exactly the period | — |
| Withdrawal that never touches capital (real) | — |
| Total withdrawn | — |
| Net monthly income after tax (year 1) | — |
| Stress test: return 2 points lower | — |
| Stress test: a 20% loss in year 1 | — |
Balance by year
In short
How long savings last depends on the initial withdrawal rate, inflation and returns: withdrawals rise with inflation each year while the remainder grows. 800,000 drawn at 40,000 (5%) rising 2.5% a year at a 5% return lasts 30+ years if a 12,000 pension starts in year 8, but runs out in year 28 at a 3% return. The 4% rule is the usual 30-year guideline; 3–3.5% for longer horizons.
Who this is for: Retirees and near-retirees deciding how much to draw from a pension pot or savings each year.
How long will my money last?
- Each year the withdrawal is taken (rising with inflation), then the rest grows at the return. Running out happens when inflation-adjusted withdrawals outpace growth — the balance curve looks fine for years, then collapses.
- Initial withdrawal rate: 4% is the classic 30-year guideline; 3–3.5% for longer horizons or cautious returns; 5%+ relies on strong markets or a shorter period.
- Sequence risk: losses in the first years hurt far more than the same losses later, because you are selling into the fall — the 20%-loss stress test shows it. A cash buffer of 1–3 years' spending is the usual defence.
- Other income (state pension, annuity, rental) starting later lets you draw more from the pot early and less afterwards; enter the amount and the year it begins.
- The "never touch capital" line spends only the real return — the figure for someone who wants to leave the pot to heirs.
See also: Retirement Savings Calculator, FIRE Calculator — Financial Independence.
Assumptions
- Each year: withdrawal (year-1 amount × (1 + inflation)^(year−1), less other income once it starts) is taken, then the balance grows at the return.
- Sustainable withdrawal solved numerically to leave zero at the end of the horizon; perpetual = pot × real return.
- Stress tests rerun with the return 2 points lower, and with a 20% loss applied in year 1.
Worked example
Initial rate 5%. The money lasts the full 30 years with about 504,000 left (roughly 240,000 in today's money) because the pension takes over part of the load from year 8. The withdrawal that leaves exactly zero after 30 years is about 45,400. Spending only the real return would allow 19,500 a year. At 3% return, however, it runs out in year 28, and a 20% loss in year 1 exhausts it in year 26 — the stress tests are the point.
Frequently asked questions
How long will 500,000 last in retirement?
Taking 25,000 a year (5%) rising 2.5% with inflation at a 5% return: about 27 years; at 20,000 a year (4%): about 38 years. Enter your own figures and returns.
What is a safe withdrawal rate?
4% of the starting pot, adjusted for inflation, is the common 30-year rule; 3–3.5% for retirements over 35 years or if you want a large margin.
Does the calculator include tax?
Withdrawals are shown gross; enter a tax rate to see the net monthly income. Pension pots, ISAs, 401(k)s and Roth accounts are taxed differently.
Should I buy an annuity instead?
An annuity converts part of the pot into guaranteed income for life — enter it as other income to see how much less you need to draw from the rest.
Can I withdraw 5% a year in retirement?
Over 20 years with average returns, usually; over 30 years it fails in a meaningful share of historical periods — run the stress tests and consider 4% or lower.
What is sequence of returns risk?
The danger that poor returns early in retirement, while you are withdrawing, permanently shrink the pot; the 20%-loss stress test shows the effect.
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