How long will $250k last in retirement?
$250k can last 30+ years at a sustainable 4% withdrawal ($10,000/yr) — but at a heavier 6% draw ($15,000/yr) it lasts only about 22 years. How long your money lasts comes down to how much you spend, taxes, and market luck.
How long $250k lasts at each spending level
Retiring at 60 with $250k invested (60% taxable / 30% traditional / 10% Roth), 6% nominal return, 3% inflation, no Social Security:
| Rate | Spend / yr | Spend / mo | How long it lasts |
|---|---|---|---|
| 3% | $8,000 | $667 | 30+ years (to 95) |
| 4% | $10,000 | $833 | 30+ years (to 95) |
| 5% | $13,000 | $1,083 | ~27 years (to 87) |
| 6% | $15,000 | $1,250 | ~22 years (to 82) |
| 7% | $18,000 | $1,500 | ~17 years (to 77) |
Three things that change the answer
- Taxes. A dollar in a traditional 401(k) isn't a dollar you can spend — withdrawals are taxed as ordinary income. This projection accounts for that, which is why real-world longevity is shorter than a naive "$250k ÷ annual spend."
- Sequence of returns. A market crash in your first few retirement years does far more damage than the same crash later — you're selling assets while they're down. Two retirees with identical average returns can get very different lifespans from the same $250k.
- Social Security, pensions, and part-time income. Every dollar of outside income is a dollar you don't withdraw. Adding Social Security alone often turns a "runs out" plan into one that lasts indefinitely.
These figures assume you retire at 60. Retire earlier and the same $250k must stretch over more years; retire later (or add Social Security) and it lasts longer. Model your exact situation in the calculator.
When the portfolio supplements rather than carries the plan
At a smaller balance the arithmetic changes: the portfolio is not the engine of the plan, it is a supplement to income that already arrives every month. Social Security is the backbone here, inflation-protected, paid for life, and immune to a bad market, so the savings only have to fill the gap between that check and what a comfortable month actually costs. That reframing takes enormous pressure off the withdrawal rate.
The most powerful lever left is spending flexibility. A balance this size cannot absorb a rigid rule that raises withdrawals every year no matter what markets did; trimming in a weak year and spending more freely after a strong one is what keeps it intact.
- Keep fixed, non-negotiable costs low so a larger share of spending can flex.
- Treat travel, gifts, and home projects as adjustable, not fixed commitments.
- Delay the higher earner's benefit toward 70 to lift the lifetime floor.
The lower the fixed floor, the smaller the job the portfolio has to do.
Common questions
How long will $250k last in retirement?
At a sustainable 4% withdrawal ($10,000/year), $250k lasts 30+ years. At a 6% draw ($15,000/year) it lasts about 22 years. The exact answer depends on your spending, taxes, and market returns.
What's a safe withdrawal rate for $250k?
The classic "4% rule" — $10,000/year from $250k, rising with inflation — has historically lasted a 30-year retirement. Retiring early (a longer horizon) argues for a slightly lower rate closer to 3.5%.
Does this include taxes?
Yes. The projection applies the federal (and where relevant, state) tax you'd owe withdrawing from taxable, traditional, and Roth accounts, so the longevity figures are realistic rather than a simple division.