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

  1. 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.
  2. 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.
  3. What factors affect how long my retirement savings will last? Factors include withdrawal rates, investment performance, inflation, healthcare costs, and lifestyle choices.