Retirement Planning Resources

Will I Run Out of Money in Retirement?

The #1 retirement fear — and how to see if it applies to you. Two scenarios compared side-by-side.

It Depends on Your Assumptions

Whether you run out of money depends on three key factors: market returns, your spending level, and how long you live. Under moderate assumptions this $750K scenario works. Under conservative assumptions, the portfolio runs thin after age 85.

Assumptions Used

Retirement Age 65
Total Savings $750,000
Annual Expenses $55,000/yr
Social Security $2,500/mo at 67
Investment Return 6% annually
Inflation 3% annually
Spouse SS $1,250/mo at 67
Filing Status Married Filing Jointly

These are illustrative assumptions. Your situation will differ. Run your personalized projection with Bullseye.

$978K
Portfolio at 80
$1.4M
Portfolio at 90
$0.0K
Income at 65
$123.7K
Income at 85

Year-by-Year Projection

Age Year Portfolio Income Expenses + Tax SS Benefits
65 2026 $733K $0 $60,264 --
66 2027 $715K $0 $61,809 --
67 2028 $714K $31,827 $75,535 $31,827
70 2031 $754K $52,167 $75,592 $52,167
73 2034 $814K $80,336 $86,821 $57,005
75 2036 $854K $86,186 $88,521 $60,476
80 2041 $978K $103,260 $85,681 $70,109
85 2046 $1.2M $123,657 $101,051 $81,275
90 2051 $1.4M $146,061 $118,641 $94,220
95 2056 $1.2M $167,536 $379,659 $109,227

All dollar amounts are in future (nominal) dollars. Milestone ages are highlighted.

The Three Factors That Determine If You Run Out

1. Market Returns

The difference between 4% and 6% average returns is enormous over 30 years. At 4%, your portfolio barely keeps pace with inflation after withdrawals. At 6%, it has room to grow. Unfortunately, you won't know your actual returns in advance — which is why testing conservative assumptions matters.

2. Your Spending Level

Small differences in annual spending compound dramatically. Spending $60,000/year vs. $55,000/year means an extra $150,000 withdrawn over 30 years — plus the lost investment growth on that money. The 4% rule provides a starting framework for sustainable withdrawal rates.

3. Longevity

A plan that works to age 85 may fail at 95. Given that a 65-year-old couple has a 50% chance of at least one spouse living past 90, planning to only age 85 is risky.

How to Reduce the Risk

  • Build in flexibility: Plan to cut discretionary spending by 10-15% if markets drop significantly in early retirement
  • Delay Social Security: Each year you delay past 62 increases your benefit by 7-8%, providing a larger guaranteed income floor. See when to claim
  • Consider Roth conversions: In low-income years, convert pre-tax money to Roth to reduce future RMD tax burden
  • Plan for healthcare: Medicare premiums and IRMAA surcharges increase with income — factor these into your plan
  • Stress test your plan: Use Bullseye's scenario feature to model market crashes, unexpected expenses, and longevity

Bottom Line

The fear of running out of money is valid — but addressable with proper planning. The key is testing your plan under multiple assumptions, building in spending flexibility, and maximizing guaranteed income sources like Social Security. Use Bullseye to model your specific situation and see exactly when (and if) your portfolio runs out under different conditions.

Run Your Personalized Projection