How Long Will $700k Last in Retirement? Essential Insights
Discover how long $700k can sustain you in retirement and key factors affecting your financial lifespan.
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How long $700k will last in retirement depends on various factors such as annual expenses, investment returns, inflation, and lifestyle choices. Assuming an annual withdrawal rate of 4%, $700k could provide $28,000 per year. If your yearly expenses are $28,000, it could last roughly 25 years. Lower withdrawals or higher investment returns might extend this period, but healthcare costs and unexpected expenses should also be considered.
FAQs & Answers
- What is a safe withdrawal rate during retirement? A commonly accepted safe withdrawal rate is 4%, which balances income needs with the longevity of your portfolio.
- How can I extend my retirement savings? You can extend your retirement savings by reducing annual withdrawals, increasing investment returns, and adjusting your lifestyle and expenses.
- What factors affect how long my retirement savings will last? Factors include withdrawal rates, investment performance, inflation, healthcare costs, and lifestyle choices.