Retirement Example
Retire on $500,000 — How Long Will It Last?
How long $500,000 in retirement savings lasts at different spending rates.
Scenario
$500k retirement nest egg. 6% portfolio return, 3% inflation.
Inputs
Savings$500,000
Return6%
Inflation3%
Results
$20,000/year spendingLasts indefinitely (4% rule)
$30,000/year spending~25 years
$40,000/year spending~17 years
$50,000/year spending~13 years
Explanation
The 4% rule: withdraw 4% of your portfolio in Year 1 ($20k on $500k), adjust for inflation each year. This historically lasts 30+ years. Spending $30k/year is closer to a 6% withdrawal rate — manageable but requires returns to cooperate.
Key Takeaways
- $500k + Social Security can be sufficient for modest lifestyles.
- Delaying Social Security to 70 increases monthly benefits by ~32% vs. claiming at 62.