The length of time your money will last depends on several factors including the amount saved, your withdrawal rate, investment returns, inflation, and your expenses.

Key Points on How Long Money Will Last

• Withdrawal Rate: A common guideline is the "4% rule," which suggests withdrawing 4% of your savings in the first year of retirement and then adjusting that amount for inflation annually. This method is designed to make your savings last about 30 years under typical market conditions

• Investment Returns and Inflation: The longevity of your money is heavily influenced by the returns on your investments and inflation rates. Higher returns can extend how long your money lasts, while inflation reduces purchasing power and may require higher withdrawals

• Withdrawal Frequency: Monthly withdrawals are typical, but adjusting the frequency (quarterly or annually) can help manage expenses and allow more money to grow between withdrawals

• Savings Amount and Expenses: The total amount saved and your annual expenses determine how long your money will last. Using calculators that factor in your savings, expected returns, and withdrawal amounts can provide personalized estimates

• Planning Tools: Various online calculators are available to estimate how long your money will last based on your inputs, helping you plan withdrawals and savings strategies effectively

Summary

To estimate how long your money will last, consider:

• Your total savings amount
• Your planned annual or monthly withdrawal amount
• Expected investment returns
• Inflation impact
• Withdrawal strategy (e.g., 4% rule)

Using these factors, your savings can be projected to last anywhere from a few years to several decades, depending on your personal financial situation and market conditions