The “4% rule”
A common guideline says withdrawing about 4% of your savings in the first year, then adjusting for inflation, has historically lasted about 30 years in many market conditions. For $400,000, that’s about $16,000 a year ($1,333 a month). It’s a rule of thumb, not a guarantee.
Ways to make savings last longer
- Delay Social Security to get a larger check.
- Reduce withdrawals in years when the market falls.
- Keep some money invested for growth.
- Consider part-time work in early retirement.
Estimate only, not financial advice. Rules can change. For your exact benefits, sign in to my Social Security at SSA.gov or call Social Security at 1-800-772-1213.
Frequently asked questions
How long will $500,000 last in retirement?
Withdrawing $2,500 a month with a 5% return and 2.5% yearly increases, about 23 years. Try the calculator with your own numbers.
What is a safe withdrawal rate?
Many planners use 3.5%–4% of your starting balance per year as a starting point, adjusted for inflation.
Sources
- Bengen W., “Determining Withdrawal Rates Using Historical Data,” Journal of Financial Planning, 1994
Last reviewed: November 2026 · By the GoldenYearsTools team at XplainedDaily · How we build our tools