Step-by-step 2026 guide to using a retirement savings calculator to forecast how long your savings will last.
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See How Long Your Savings Will Last
Do you worry about running out of money? This simple guide shows how to know for sure.
You can use a money calculator. It tells you how long your savings will last. You just need a few numbers.
Put in your savings. Add how much you spend each month. The tool does the rest.
This is great if:
- You plan to retire soon
- You have an emergency fund
- You changed jobs
- You have savings goals
Why This Tool Helps You
This calculator takes away your money worries. It gives you clear answers.
You can:
- Plan your retirement cash flow
- See what happens if you spend more or less
- Make better choices about saving
- See a graph of your balance over time
Let me show you how it works.
You have $100,000 saved. You take out $2,000 a month. You earn 5% a year.
Your money lasts about 5 years and 8 months.
Now, you take out $1,500 a month. Your money lasts over 8 years.
Small changes make a big difference.
What You Need to Know
A good calculator asks for:
- How much money you have now
- How much you want to take out each year
- What you think your investments will earn
- How prices might rise (inflation)
- When you plan to retire
- What else you get (like Social Security)
Make sure to:
- Use today’s dollars for all numbers
- Know if returns are real or nominal
- Think about taxes and fees
How to Use the Tool
Step 1: Gather Your Numbers
Write down:
- Your current savings
- How much you plan to spend each year
- What you think your money will earn
- How prices might go up
- When you want to retire
Step 2: Pick Good Numbers
Use these starting points:
- Inflation: 2.9%
- Stock returns: 6%
- Bond returns: 5%
- Life span: Plan to age 95
Test different numbers too. Small changes can make big differences.
Step 3: Run the Numbers
Put your info into the calculator. See how long your money lasts.
Try different cases:
- What if you spend less?
- What if returns are lower?
- What if prices go up faster?
Common Mistakes to Avoid
Many people make these errors:
- Using old inflation numbers
- Expecting high returns forever
- Forgetting bad early years in retirement
- Not counting Social Security
Fix these by:
- Using current inflation data
- Testing low return cases
- Adding guaranteed income
- Running stress tests
Your Next Steps
- Gather your account balances
- Set your first-year spending
- Choose your mix of stocks and bonds
- Run three cases: good, normal, bad
- Save your results
- Plan what to do if money runs low
If your money might run out before age 95, do one thing:
- Work two more years
- Spend 1% less
- Add more stocks
- Get a small annuity
Final Thoughts
A money calculator is your best friend. It shows what might happen.
It cannot guess health costs or family needs. But it gives you a solid base.
Use it as a map, not a rule. Stay flexible.
Keep some cash aside for surprises.
Check your plan each year. Markets change. You change too.
You can see how long your money will last right now. Try it today.
Plan well. Sleep well. Your future self will thank you.
