How Long Will $800,000 Last in Retirement?

Preparing for retirement is a central component of long-term financial stability. While Social Security can provide a foundation of income, it typically does not replace a full pre-retirement paycheck. Building personal savings is therefore essential to maintaining your desired lifestyle once you stop working. A common question is how far a specific nest egg might stretch. For example, is $800,000 enough to support you through retirement? Here’s how to evaluate that figure.

For more help planning your retirement, consider working with a financial advisor.

Estimating Retirement Expenses

Calculating your living expenses in retirement is the first step in figuring out how long your $800,000 in savings will last. While adding up your fixed expenses is straightforward, you should also account for your variable expenses.

Fixed Expenses

Fixed expenses remain constant each month. For example, this might include rent or a mortgage, insurance premiums and certain utilities. Add these expenses together and see how much you spend monthly and annually.

Variable Expenses

Variable expenses fluctuate monthly. Many things could fall into this category, including travel expenses, health care costs, entertainment and charitable donations. Because these expenses are variable, you will likely have to set a limit on how much you can spend on them each month. If you reach that limit, you must either use money from elsewhere in your budget or forego the purchase.

Calculating Retirement Income

The next challenge is calculating retirement income. This can be more challenging than calculating your income while working because you might have more sources of income. For example, your retirement income might include:

• Social Security
• Pension plans
• Retirement savings

The good news is that Social Security and pension benefits don’t change from one month to the next. They might include cost of living increases each year, but their relative stability makes planning around them easier. Retirement savings can be harder to plan for, especially when relying on investments.

You can use SmartAsset’s free retirement calculator to see if you are on track to meet your retirement goals.

Estimating the Length of Retirement

Another challenge of planning for retirement is estimating how long your retirement will be. This is not an easy question to answer, as many variables can affect life expectancy. However, estimating your life expectancy is an important part of retirement planning. Life expectancy has increased, so retirees should plan for multiple decades of retirement. The life expectancy in the U.S. is currently around 77 ½ years.

Consider your life expectancy at your current age, as well. The Social Security Administration’s Period Life Table lists the most up-to-date life expectancies for any age. ¹ For example, a 65-year-old man has a life expectancy of an additional 16.95 years. A 65-year-old woman, on the other hand, can expect to live another 19.75 years, according to the table.

In addition to life expectancy, you should consider things like your current health and family history and how that will affect your life expectancy. Finally, you should use an inflation calculator to see how long your money will last.

Retirement Portfolio Styles

The next step is to determine your investment strategy. For example, your portfolio might be more on the conservative side, or it could be more on the aggressive side. Here is a quick look at how an $800,000 retirement portfolio might look, depending on your strategy:

Conservative Portfolio

With a conservative portfolio, your investments will consist mainly of relatively low-risk investments. For example, you might have:

• 50% bonds ($400,000)
• 30% cash ($240,000)
• 20% stocks ($160,000)

The goal of a conservative portfolio is generally one of wealth preservation rather than wealth building. Thus, you might also focus on blue-chip stocks that pay dividends rather than growth stocks.

Balanced Portfolio

A balanced portfolio may be appropriate for retirees who want a mix of growth and income and are willing to accept some risk in exchange for higher returns. An example of your asset allocation might be:

• 50% stocks ($400,000)
• 30% bonds ($240,000)
• 20% cash ($160,000)

This portfolio includes a noticeably higher allocation to stocks, and cash becomes the lowest percentage. A balanced portfolio often includes a mix of stocks, bonds and cash. It tends to focus on diversified investments that offer a mix of growth and income.

Aggressive Portfolio

An aggressive portfolio may be appropriate for retirees with a longer time horizon who are willing to accept higher risk in exchange for higher potential returns. If you have an aggressive $800,000 retirement portfolio, stocks become the focus of your portfolio:

• 70% stocks ($560,000)
• 20% bonds ($160,000
• 10% cash ($80,000)

An aggressive portfolio might include a mix of high-growth stocks and small-cap stocks. Some aggressive investors might venture into alternative investments like commodities or precious metals.

These examples provide a starting point, but the right strategy depends on your goals, risk tolerance and time horizon. Consulting a financial advisor before making major investment decisions, especially for retirement, can be beneficial.

Example of How Long $800,000 Can Last

Using the 4% rule, you could withdraw $32,000 from your $800,000 portfolio in your first year of retirement and then adjust for inflation. This strategy, which assumes a 50/50 stock-bond split with moderate returns, could preserve savings for about 30 years.

The average Social Security retired worker benefit in January 2026 was $2,071 per month ($24,852 per year). ² Combined with the 4% portfolio withdrawal, your total retirement income would be approximately $55,000-$60,000 per year before taxes.

Depending on your expenses and life expectancy, you may opt for a more aggressive withdrawal strategy. Withdrawing 5% in year one would provide $40,000 (excluding Social Security) but reduce savings longevity to 20–25 years.

Meanwhile, a 6% or 7% withdrawal rate would yield $48,000 or $56,000, but significantly shorten savings longevity.

Major Risks That Could Derail an $800,000 Retirement Plan

Even if your withdrawal rate appears sustainable on paper, several risks can affect how long $800,000 lasts in retirement. Understanding these variables can help frame realistic expectations.

Inflation Risk

Inflation gradually reduces purchasing power over time. Even at a modest 3% annual inflation rate, expenses can double in roughly 24 years. This means that a $55,000 annual income today may need to be closer to $75,000–$80,000 in two decades to maintain the same lifestyle.

If portfolio growth does not keep pace with inflation, real income can decline. This is particularly important for retirees relying heavily on fixed-income investments.

Sequence of Returns Risk

Market timing matters more in retirement than during the accumulation phase. Poor market performance in the first several years of retirement — combined with withdrawals — can significantly reduce portfolio longevity.

For example, withdrawing 4% annually during a market downturn may permanently reduce the portfolio base, limiting its ability to recover when markets rebound. This risk is often referred to as “sequence of returns risk,” and it can affect even well-diversified portfolios.

Longevity Risk

Many retirees underestimate how long retirement may last. While average life expectancy in the U.S. is around 77 ½ years, a 65-year-old today often has a meaningful probability of living into their 80s or 90s. For couples, the likelihood that at least one spouse lives into their 90s increases further.

An $800,000 portfolio may need to support income for 25 to 30 years or longer, particularly for retirees in good health.

Healthcare and Long-Term Care Costs

Healthcare costs tend to increase with age and can become one of the largest retirement expenses. Medicare does not cover all medical costs, and out-of-pocket expenses, supplemental insurance premiums and prescription drug costs can add up.

Long-term care expenses represent another potential financial variable. Extended care services, whether at home or in a facility, can significantly increase annual spending and reduce portfolio longevity if not planned for.

Market Volatility

Even diversified portfolios experience volatility. Stocks, bonds and alternative investments can all fluctuate in value. While long-term investors may expect markets to recover over time, retirees drawing income from their portfolios may feel the impact of short-term declines more directly.

Because retirement income strategies often involve systematic withdrawals, sustained volatility can alter projected outcomes.

Bottom Line

How long $800,000 will last in retirement depends on factors like your expenses, retirement income and how long your retirement will be. With substantial pension and Social Security income, an $800,000 portfolio may last for decades, especially with low living and healthcare costs. But again, there are many variables. It’s best to meet with a financial advisor who will help you build a custom retirement plan.

Tips for Retirement Savings

• A financial advisor can guide you through major financial decisions, like determining your investing strategy. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Deciding how to invest can be a challenge, especially when you don’t know how much your money will grow over time. SmartAsset’s investment calculator can help you estimate how much your money will grow to help you decide which type of investment is right for you.

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