What decides how long it lasts
Withdrawal rate matters most. Below about 4%, a balanced portfolio's growth roughly keeps pace with inflation-adjusted withdrawals for 30 years or more. Above 5%, you are mostly spending principal.
Returns, and their order. A crash in the first years of retirement does far more damage than the same crash later, because you sell shares low to fund spending. The withdrawal calculator shows this with an interactive example.
Other income. Social Security and pensions reduce what your savings must cover. Waiting to claim Social Security raises your check by about 8% a year past full retirement age; see the Social Security calculator.
Other amounts
Questions people ask
How long will $250,000 last in retirement?
At a 4% first-year withdrawal ($10,000 a year, raised 2.5% a year for inflation) and a steady 5% return, $250,000 lasts 38 yrs. Withdraw 6% ($15,000) and it lasts 21 yrs. The table on this page shows every combination of withdrawal rate and return.
How much income does $250,000 give per month?
Using the 4% rule, $250,000 supports about $833 a month in the first year, rising with inflation. A more cautious 3.5% gives $729 a month. Add Social Security and any pension on top.
Can I retire at 62 with $250,000?
It depends on your spending after Social Security. For example, if you need $4,000 a month and Social Security pays $1,800 at 62, your savings must cover $2,200 a month ($26,400 a year), which $250,000 supports for 11 yrs at a 5% return. Your own Social Security estimate is at ssa.gov/myaccount.
Does this include inflation and taxes?
Withdrawals rise 2.5% a year for inflation. Taxes are not deducted: withdrawals from Traditional 401(k)s and IRAs are taxable income, so withdraw enough to cover the tax too. Roth withdrawals are tax-free.