Estimate how long your savings could last with Guardian’s retirement calculator
Changes to your savings rate, retirement age, or desired income in retirement can each affect how long your retirement savings will last. Guardian’s retirement calculator can help you determine how long your savings will last.
Key takeaways
How long your retirement savings last depends primarily on your withdrawal rate, investment returns, inflation, taxes, and income from sources like Social Security.
The 4% rule suggests that if you withdraw 4% of your assets each year, your savings may last for 30 years or more — but it’s a guideline, not a guarantee.
A calculator can provide a useful starting estimate, but a financial advisor can help model what a tool can’t, like irregular expenses and market timing risk.
Get a ballpark estimate for your retirement planning — in minutes
Everyone needs money to live on after they stop working. That’s why an important part of retirement planning is estimating how much you could take in regular systematic withdrawals — and for how long — without depleting your nest egg.
Systematic withdrawals are a way to distribute money from your retirement accounts on a regular basis, either as a fixed dollar amount or as a percentage of the balance. They can provide a steady flow of income while allowing the balance of your savings to remain invested and potentially grow.
What determines how long your savings will last
Several factors influence how long your retirement savings will last:
Your savings at retirement: This may include both savings and investment accounts as well as tax-deferred accounts, such as 401(k)s or individual retirement accounts (IRAs).
Retirement income: This could include potential income sources such as Social Security, pensions, and part-time work.
Estimated expenses: Your estimated expenditures for daily living expenses, health care, and outstanding debt, as well as costs for travel, hobbies, or other lifestyle changes in retirement.
Investment returns: Better-than-average returns could extend your savings, while below-average returns could effectively shorten how long they last.
Taxes: Your federal marginal tax bracket at retirement could affect the tax impact of withdrawals and distributions.
Inflation: Periods of high inflation could reduce the purchasing power of your savings.
Use our retirement planning quiz to generate a personalized planner to help you visualize your retirement goals.
The 4% rule: A quick way to estimate
The 4% rule suggests that if you withdraw 4% of your assets each year, your savings can potentially last for 30 years or more — but it’s a guideline, not a guarantee.
Here’s how it works: Let’s say you retire with $1 million. According to the 4% rule, you can conservatively withdraw $40,000 per year, plus an inflation adjustment in future years. This rule is based on the original Trinity study, which tested the theory over a large sample of 30-year periods.
Note that the 4% rule assumes a roughly balanced stock/bond portfolio that stays invested — and it’s important to know that historical performance doesn’t always guarantee savings will last 30 years.1
How taxes affect how long your savings last
Withdrawals from pre-tax accounts such as 401(k)s and traditional IRAs are taxed as ordinary income, while qualified Roth withdrawals may be tax-free. Depending on the type of account(s) and your tax situation, the same balance could fund very different lifestyles.
The Guardian retirement calculator assumes a 22% federal income tax bracket at retirement — if your tax bracket will be different, that could affect how long your savings will last. Adjust the tax bracket inputs to reflect your estimated tax bracket at retirement.
Some retirement strategies may help reduce your tax bill — and potentially boost your spending money. For example, you might consider keeping your taxable withdrawals under the 0% capital gains tax threshold, which is $48,350 for single filers as of 2026.2 For specifics on your personal tax situation, speak with a tax professional.
How Social Security changes the math
You will only need to withdraw the difference between your expenses and your Social Security benefit. Having a steady income directly reduces the drawdown on savings (and can help keep your assets invested longer).3 In other words, your monthly expenses minus your estimated Social Security benefit equals the withdrawal amount your savings must cover:
(Expenses) – (Social Security benefit) = Withdrawal amount
An example of what that means: The average Social Security benefit in 2026 is $2,071 per month.4 Assuming that’s what you get, if your monthly expenses in retirement are $6,000, you’ll need to withdraw just under $4,000 per month ($3,929) from retirement savings in order to meet your obligations.
Note that the exact amount of Social Security benefits you will receive is based on your income history and retirement age. Delaying benefits past age 62 increases the monthly amount. Not sure what you’re entitled to? You can estimate your benefit by using the Social Security benefit calculator or by signing in to your Social Security account.
Ways to help your savings last longer
Here are a few other ways that could potentially help preserve your nest egg after you stop working.
Remaining invested in retirement
Rather than liquidating your investment portfolio at retirement, consider remaining invested and using an investment strategy that diversifies your holdings to match your risk tolerance. A financial advisor can help you determine the right allocation for your goals.
Using a dynamic withdrawal strategy
Instead of making regular withdrawals of a fixed amount each year — 4%, for example — you can change your withdrawal amount based on market conditions. Withdrawing less in down markets and more in strong years can help avoid selling assets at low prices. If necessary, fill in monthly spending gaps with other savings or by temporarily cutting expenses.
Creating steady income with annuities
Annuities allow retirees to convert part of their savings into steady, lifetime income that doesn’t depend on market performance.5 If you have enough income from annuities to cover the majority of your monthly expenses, you may have greater flexibility for funding large, one-time expenses from your retirement assets.
Annuities are only as reliable as the life insurance issuer backing them. With more than 165 years in business and an A++ (Superior) rating from A.M. Best, Guardian’s financial strength offers a foundation of income stability that can last a lifetime.6
Use the Guardian retirement checklist to review the key steps to take at every age to ensure your savings are aligned with your financial goals.
Get help making your savings last
A calculator can estimate whether your retirement savings are on track, but it can’t model irregular expenses, health costs, market timing, or personal circumstances.
Consider speaking with an experienced professional to uncover retirement income solutions that fit your needs and unique financial situation. If you’d like, we can connect you with a local Guardian financial advisor who can help explore personalized savings and withdrawal strategies.
Frequently asked questions about retirement savings
There are steps you can take to help mitigate the risk of outliving your retirement savings. One common strategy is investing a portion of retirement savings in an annuity that guarantees a lifetime stream of income. Retirees also consider returning to work at least part-time, seeking financial assistance from friends and family, or turning to local, state, and federal government assistance programs.
Most retirement calculators factor a modest level of inflation into their models based on historical averages. Guardian’s default inflation input is 2%. Historically, stock and bond returns have outpaced inflation — which is why financial advisors say it’s important to have an investment strategy in retirement. However, no forecasting method is perfect, and if interest rates rise and remain high for an unexpected period, calculations based on 2% inflation may be off. Also, weaker stock and bond market returns may affect the reliability of calculator estimates.
According to the Federal Reserve, the average (mean) retirement savings in the 65–74 age bracket is about $609,230 as of 2022 (the most recent data available). The median cumulative savings for the same age bracket is approximately $200,000. These amounts refer to the average balances held in retirement accounts.
One rule of thumb for retirement savings is that for every $1,000 of desired monthly retirement income, you should have $240,000 invested. For an annual income of $80,000 per year (or $6,666 per month), you should save roughly $1.6 million by retirement.
Assuming a 4% withdrawal rate, a savings balance of $1 million would mean an income of roughly $40,000 per year for 25 years. However, several factors, including investment returns, taxes, and living expenses, can affect how long that money could last.
