For most retirees with $500,000 in savings plus average Social Security benefits ($2,071 per month as of January 2026, per the Social Security Administration), retirement funds can sustain $3,500–$4,000 in monthly spending for 25–30 years under a standard withdrawal approach near 3.9%. The variables that matter most are withdrawal strategy, Social Security timing, and whether your total costs — including advisory fees — are working for or against your timeline.
If you've ever typed "will my retirement savings last" into a search bar at 2 a.m., you already know this feeling. Whether you're wondering how much you need to retire or just trying to figure out if the number you already have is enough, the fear is common. According to the 2025 EBRI Retirement Confidence Survey, one in three workers isn't confident they'll have enough money to live comfortably in retirement. A 2025 Voya Financial survey found that 75% of working Americans worry about outliving their savings. And 79% of workers are at least somewhat concerned about the government making significant changes to Social Security or Medicare, per the same EBRI survey.
That fear is rational. But the number that scared you probably isn't accurate — and here's something most people haven't had the tools to see: the tools that model your retirement often can't show the full picture either. The tools advisors and consumers both rely on often don't model fee drag, don't adjust for state cost-of-living, and don't show how Social Security timing interacts with withdrawal rates. This isn't a people problem — it's an infrastructure problem.
Here's what the data actually says — and why most people with $500,000 or more in savings are in better shape than they think.
Will your retirement savings last? The calmer answer
The short answer: probably yes, and by a wider margin than most retirement calculators suggest.
The EBRI Retirement Security Projection Model projects that roughly 40% of U.S. households ages 35–64 could fall short in retirement — a $3.83 trillion national deficit. That sounds terrifying. But turn the number around: 60% of households are projected to be fine. And with SECURE 2.0 provisions, EBRI estimates that figure has likely improved to around 38%.
And here's the data point that almost never makes the headlines. Research by David Blanchett, PhD (Head of Retirement Research, PGIM DC Solutions), shows that real retirement spending declines approximately 1% per year. By age 84, the average retiree spends about 26% less in inflation-adjusted terms than they did at 65. Researchers call this the "spending smile" — higher spending in active early years, lower in the middle, rising slightly late due to healthcare. The traditional assumption of constant inflation-adjusted spending leads to oversaving by 10–20%.
In plain terms: you'll probably need less money than the calculators tell you. That's not a reason to be careless. It's a reason to shift from worrying to modeling. If the numbers feel overwhelming, there's a calmer way to run the numbers that starts with just three inputs instead of twenty. If you're the kind of person who'd rather see your own numbers than trust someone else's guess, this next section is for you.
See how long your savings will actually last — model it yourself in 60 seconds, free.
Retirement savings sustainability simulator
Most retirement calculators give you a number — but not the full picture. They typically can't show you how different withdrawal strategies, Social Security timing, advisory fees, and state cost-of-living all interact to shape your retirement timeline. Some of that is complexity. Some of it is structural: many calculator providers earn revenue from advisor referrals or advisory fees, which shapes what their tools are built to model.
Truthifi's Retirement Savings Sustainability Simulator lets you input your savings, Social Security benefit, withdrawal rate, advisory fee percentage, and state — then shows exactly how long your money lasts under multiple scenarios. The goal isn't to tell you whether advisory fees are worth it (for many people, they are). It's to put every variable in one place — so you and your advisor are working from the same picture.
How long will your savings actually last? By portfolio size
Before running scenarios, here's where you stand relative to other Americans. According to the Federal Reserve's 2022 Survey of Consumer Finances, only 54% of American households have any dedicated retirement savings at all. Among those who do, the median for households age 65–74 is $200,000. The average is $609,230 — but averages are skewed heavily by high-net-worth outliers. Only about 9.2% of households age 55–64 have retirement assets exceeding $1 million, per Congressional Research Service analysis.
If you have $500,000 saved, you're ahead of the vast majority of Americans approaching retirement. The narrative that "$500K isn't enough" is misleading for most retirees who have Social Security income.
Here's what the math looks like, using Morningstar's 2025 safe withdrawal rate of 3.9% (30-year horizon, 90% success), average Social Security of $2,071/month starting at age 67, and a balanced portfolio returning 6% nominal:
Portfolio sustainability by size and fee level (3.9% withdrawal rate)
Portfolio | Annual withdrawal (year 1) | Monthly income with SS (year 3+) | Years at 0% fee | Years at 0.5% fee | Years at 1.0% fee | Years at 1.5% fee |
|---|---|---|---|---|---|---|
$300,000 | $11,700 | ~$3,046 | 30+ | 27.8 | 24.6 | 21.8 |
$500,000 | $19,500 | ~$3,696 | 30+ | 29.1 | 26.4 | 23.7 |
$750,000 | $29,250 | ~$4,508 | 30+ | 30+ | 28.3 | 25.6 |
$1,000,000 | $39,000 | ~$5,321 | 30+ | 30+ | 30+ | 27.5 |
$1,500,000 | $58,500 | ~$6,946 | 30+ | 30+ | 30+ | 30+ |
$2,000,000 | $78,000 | ~$8,571 | 30+ | 30+ | 30+ | 30+ |
Assumptions: 6% nominal return, 3% inflation, 3.9% SWR (inflation-adjusted), SS at $2,071/month from age 67, 2.8% COLA. Baseline models, not guarantees.
The key column is "Monthly income with SS" — that's your real cash flow picture. Your total cash flow from portfolio withdrawals and Social Security combined. At $500,000 with no advisory fees, that's roughly $3,700/month for 30+ years. Even with a 1% fee, $500K sustains 26+ years.
Your zip code changes the math
Where you retire matters as much as how much you've saved. Using state cost-of-living data from the Missouri Economic Research and Information Center (MERIC), here's how $500,000 performs across the country:
State | Cost-of-living index | Adjusted monthly spending | Years $500K lasts |
|---|---|---|---|
Mississippi | 83.1 | ~$3,072 | 30+ |
Oklahoma | 84.7 | ~$3,129 | 30+ |
Kansas | 86.5 | ~$3,194 | 30+ |
Tennessee | 89.4 | ~$3,300 | 30+ |
... | ... | ... | ... |
Massachusetts | 118.7 | ~$4,384 | 27.1 |
New York | 123.0 | ~$4,543 | 25.8 |
California | 134.5 | ~$4,968 | 23.4 |
Hawaii | 186.5 | ~$6,887 | 17.2 |
State indices are directional — costs vary significantly within states (New York City vs. upstate, for example). Check local costs for your specific area.
$500,000 lasts 30+ years in low-cost states like Mississippi and Tennessee — but only 23 years in California and fewer than 18 in Hawaii. If you're flexible on location, that flexibility is worth years of retirement income.
To model your specific scenario, you need your real total across all accounts. Truthifi's Explore consolidates retirement accounts, brokerage accounts, and other holdings into a single view — so you see your actual number across every institution, not the fragmented picture from logging into four platforms. The sustainability math above is only as good as the starting number you plug in.
Withdrawal strategies explained: 4% rule, guardrails, buckets, and VPW
The "4% rule" is the most famous number in retirement planning — and also the most misunderstood.
In 1994, William Bengen published research showing that a 4% initial withdrawal rate, adjusted annually for inflation, survived every 30-year period in U.S. market history from 1926 onward — the worst-case floor, technically called SAFEMAX.
But here's where the 4% rule gets more interesting than most people realize. The 4% rule isn't really a "rule." It's a worst-case floor. As CFP® Michael Kitces has documented extensively in his research, in two-thirds of historical 30-year periods, retirees following the 4% rule finished with more than double their starting balance. Underspending — not overspending — is the more common outcome. For retirees working with a financial advisor, this is precisely the kind of nuance that good retirement planning surfaces — knowing when you can afford to spend more without jeopardizing your timeline. Morningstar's 2025 "State of Retirement Income" study, led by Christine Benz, Amy Arnott, Tao Guo, and Jason Kephart, puts the current safe withdrawal rate at 3.9% for fixed withdrawals over 30 years with 90% success. Benz described 3.9% as "kind of a dispiriting number." But here's where it gets interesting: flexible strategies significantly increase your starting rate.
Comparing withdrawal approaches
Strategy | Starting rate | How it works | Trade-off |
|---|---|---|---|
Fixed (3.9%) | 3.9% | Withdraw same inflation-adjusted amount every year | Steady income; highest ending balance; most conservative |
Guardrails (5.2%) | 5.2% | Adjust spending up or down ~10% based on portfolio performance | 33% more income than fixed; variable cash flow; lower bequest |
Varies | Divide savings into near-term cash (1–2 years), medium-term bonds (3–7 years), long-term stocks (8+ years) | Psychological comfort; buffers against sequence risk | |
VPW / Flexible (5.7%) | Up to 5.7% | Withdraw a fixed percentage of current balance each year | Maximizes lifetime spending; most variable income; smallest bequest |
Sources: Morningstar 2025 "State of Retirement Income"; 401k Specialist; Kiplinger
The guardrails approach deserves special attention. In good market years, you spend a little more. In bad years, you pull back. That built-in flexibility reduces sequence-of-returns risk and is why most financial planners are increasingly adopting guardrails for clients who can tolerate some income variability.
Another approach gaining traction among retirement planners is the bond tent strategy (sometimes called a "rising equity glidepath"). The idea: increase your bond allocation in the 5 years before and after retirement — the window when sequence-of-returns risk is highest — then gradually shift back toward equities as you move deeper into retirement. Research suggests a bond tent can reduce the probability of portfolio depletion during the critical first decade without sacrificing long-term growth. It pairs well with guardrails and bucket strategies. For security-focused retirees, the 4% rule remains a solid floor. For retirees comfortable with flexibility, guardrails or VPW approaches can meaningfully increase lifetime spending. Either way, the starting point matters far less than whether you're paying attention and willing to adjust.
For most retirees with $500,000 in savings plus average Social Security benefits ($2,071 per month as of January 2026, per the Social Security Administration), retirement funds can sustain $3,500–$4,000 in monthly spending for 25–30 years under a standard withdrawal approach near 3.9%. The variables that matter most are withdrawal strategy, Social Security timing, and whether your total costs — including advisory fees — are working for or against your timeline.
If you've ever typed "will my retirement savings last" into a search bar at 2 a.m., you already know this feeling. Whether you're wondering how much you need to retire or just trying to figure out if the number you already have is enough, the fear is common. According to the 2025 EBRI Retirement Confidence Survey, one in three workers isn't confident they'll have enough money to live comfortably in retirement. A 2025 Voya Financial survey found that 75% of working Americans worry about outliving their savings. And 79% of workers are at least somewhat concerned about the government making significant changes to Social Security or Medicare, per the same EBRI survey.
That fear is rational. But the number that scared you probably isn't accurate — and here's something most people haven't had the tools to see: the tools that model your retirement often can't show the full picture either. The tools advisors and consumers both rely on often don't model fee drag, don't adjust for state cost-of-living, and don't show how Social Security timing interacts with withdrawal rates. This isn't a people problem — it's an infrastructure problem.
Here's what the data actually says — and why most people with $500,000 or more in savings are in better shape than they think.
Will your retirement savings last? The calmer answer
The short answer: probably yes, and by a wider margin than most retirement calculators suggest.
The EBRI Retirement Security Projection Model projects that roughly 40% of U.S. households ages 35–64 could fall short in retirement — a $3.83 trillion national deficit. That sounds terrifying. But turn the number around: 60% of households are projected to be fine. And with SECURE 2.0 provisions, EBRI estimates that figure has likely improved to around 38%.
And here's the data point that almost never makes the headlines. Research by David Blanchett, PhD (Head of Retirement Research, PGIM DC Solutions), shows that real retirement spending declines approximately 1% per year. By age 84, the average retiree spends about 26% less in inflation-adjusted terms than they did at 65. Researchers call this the "spending smile" — higher spending in active early years, lower in the middle, rising slightly late due to healthcare. The traditional assumption of constant inflation-adjusted spending leads to oversaving by 10–20%.
In plain terms: you'll probably need less money than the calculators tell you. That's not a reason to be careless. It's a reason to shift from worrying to modeling. If the numbers feel overwhelming, there's a calmer way to run the numbers that starts with just three inputs instead of twenty. If you're the kind of person who'd rather see your own numbers than trust someone else's guess, this next section is for you.
See how long your savings will actually last — model it yourself in 60 seconds, free.
Retirement savings sustainability simulator
Most retirement calculators give you a number — but not the full picture. They typically can't show you how different withdrawal strategies, Social Security timing, advisory fees, and state cost-of-living all interact to shape your retirement timeline. Some of that is complexity. Some of it is structural: many calculator providers earn revenue from advisor referrals or advisory fees, which shapes what their tools are built to model.
Truthifi's Retirement Savings Sustainability Simulator lets you input your savings, Social Security benefit, withdrawal rate, advisory fee percentage, and state — then shows exactly how long your money lasts under multiple scenarios. The goal isn't to tell you whether advisory fees are worth it (for many people, they are). It's to put every variable in one place — so you and your advisor are working from the same picture.
How long will your savings actually last? By portfolio size
Before running scenarios, here's where you stand relative to other Americans. According to the Federal Reserve's 2022 Survey of Consumer Finances, only 54% of American households have any dedicated retirement savings at all. Among those who do, the median for households age 65–74 is $200,000. The average is $609,230 — but averages are skewed heavily by high-net-worth outliers. Only about 9.2% of households age 55–64 have retirement assets exceeding $1 million, per Congressional Research Service analysis.
If you have $500,000 saved, you're ahead of the vast majority of Americans approaching retirement. The narrative that "$500K isn't enough" is misleading for most retirees who have Social Security income.
Here's what the math looks like, using Morningstar's 2025 safe withdrawal rate of 3.9% (30-year horizon, 90% success), average Social Security of $2,071/month starting at age 67, and a balanced portfolio returning 6% nominal:
Portfolio sustainability by size and fee level (3.9% withdrawal rate)
Portfolio | Annual withdrawal (year 1) | Monthly income with SS (year 3+) | Years at 0% fee | Years at 0.5% fee | Years at 1.0% fee | Years at 1.5% fee |
|---|---|---|---|---|---|---|
$300,000 | $11,700 | ~$3,046 | 30+ | 27.8 | 24.6 | 21.8 |
$500,000 | $19,500 | ~$3,696 | 30+ | 29.1 | 26.4 | 23.7 |
$750,000 | $29,250 | ~$4,508 | 30+ | 30+ | 28.3 | 25.6 |
$1,000,000 | $39,000 | ~$5,321 | 30+ | 30+ | 30+ | 27.5 |
$1,500,000 | $58,500 | ~$6,946 | 30+ | 30+ | 30+ | 30+ |
$2,000,000 | $78,000 | ~$8,571 | 30+ | 30+ | 30+ | 30+ |
Assumptions: 6% nominal return, 3% inflation, 3.9% SWR (inflation-adjusted), SS at $2,071/month from age 67, 2.8% COLA. Baseline models, not guarantees.
The key column is "Monthly income with SS" — that's your real cash flow picture. Your total cash flow from portfolio withdrawals and Social Security combined. At $500,000 with no advisory fees, that's roughly $3,700/month for 30+ years. Even with a 1% fee, $500K sustains 26+ years.
Your zip code changes the math
Where you retire matters as much as how much you've saved. Using state cost-of-living data from the Missouri Economic Research and Information Center (MERIC), here's how $500,000 performs across the country:
State | Cost-of-living index | Adjusted monthly spending | Years $500K lasts |
|---|---|---|---|
Mississippi | 83.1 | ~$3,072 | 30+ |
Oklahoma | 84.7 | ~$3,129 | 30+ |
Kansas | 86.5 | ~$3,194 | 30+ |
Tennessee | 89.4 | ~$3,300 | 30+ |
... | ... | ... | ... |
Massachusetts | 118.7 | ~$4,384 | 27.1 |
New York | 123.0 | ~$4,543 | 25.8 |
California | 134.5 | ~$4,968 | 23.4 |
Hawaii | 186.5 | ~$6,887 | 17.2 |
State indices are directional — costs vary significantly within states (New York City vs. upstate, for example). Check local costs for your specific area.
$500,000 lasts 30+ years in low-cost states like Mississippi and Tennessee — but only 23 years in California and fewer than 18 in Hawaii. If you're flexible on location, that flexibility is worth years of retirement income.
To model your specific scenario, you need your real total across all accounts. Truthifi's Explore consolidates retirement accounts, brokerage accounts, and other holdings into a single view — so you see your actual number across every institution, not the fragmented picture from logging into four platforms. The sustainability math above is only as good as the starting number you plug in.
Withdrawal strategies explained: 4% rule, guardrails, buckets, and VPW
The "4% rule" is the most famous number in retirement planning — and also the most misunderstood.
In 1994, William Bengen published research showing that a 4% initial withdrawal rate, adjusted annually for inflation, survived every 30-year period in U.S. market history from 1926 onward — the worst-case floor, technically called SAFEMAX.
But here's where the 4% rule gets more interesting than most people realize. The 4% rule isn't really a "rule." It's a worst-case floor. As CFP® Michael Kitces has documented extensively in his research, in two-thirds of historical 30-year periods, retirees following the 4% rule finished with more than double their starting balance. Underspending — not overspending — is the more common outcome. For retirees working with a financial advisor, this is precisely the kind of nuance that good retirement planning surfaces — knowing when you can afford to spend more without jeopardizing your timeline. Morningstar's 2025 "State of Retirement Income" study, led by Christine Benz, Amy Arnott, Tao Guo, and Jason Kephart, puts the current safe withdrawal rate at 3.9% for fixed withdrawals over 30 years with 90% success. Benz described 3.9% as "kind of a dispiriting number." But here's where it gets interesting: flexible strategies significantly increase your starting rate.
Comparing withdrawal approaches
Strategy | Starting rate | How it works | Trade-off |
|---|---|---|---|
Fixed (3.9%) | 3.9% | Withdraw same inflation-adjusted amount every year | Steady income; highest ending balance; most conservative |
Guardrails (5.2%) | 5.2% | Adjust spending up or down ~10% based on portfolio performance | 33% more income than fixed; variable cash flow; lower bequest |
Varies | Divide savings into near-term cash (1–2 years), medium-term bonds (3–7 years), long-term stocks (8+ years) | Psychological comfort; buffers against sequence risk | |
VPW / Flexible (5.7%) | Up to 5.7% | Withdraw a fixed percentage of current balance each year | Maximizes lifetime spending; most variable income; smallest bequest |
Sources: Morningstar 2025 "State of Retirement Income"; 401k Specialist; Kiplinger
The guardrails approach deserves special attention. In good market years, you spend a little more. In bad years, you pull back. That built-in flexibility reduces sequence-of-returns risk and is why most financial planners are increasingly adopting guardrails for clients who can tolerate some income variability.
Another approach gaining traction among retirement planners is the bond tent strategy (sometimes called a "rising equity glidepath"). The idea: increase your bond allocation in the 5 years before and after retirement — the window when sequence-of-returns risk is highest — then gradually shift back toward equities as you move deeper into retirement. Research suggests a bond tent can reduce the probability of portfolio depletion during the critical first decade without sacrificing long-term growth. It pairs well with guardrails and bucket strategies. For security-focused retirees, the 4% rule remains a solid floor. For retirees comfortable with flexibility, guardrails or VPW approaches can meaningfully increase lifetime spending. Either way, the starting point matters far less than whether you're paying attention and willing to adjust.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically. Unlock plain-English insights that drive smarter financial decisions today.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically. Unlock plain-English insights that drive smarter financial decisions today.
The smartest money move you can make? Run a wellness check.
Truthifi® tests your finances for 100+ risks and opportunities—automatically.
The fee equation: what advisory costs mean for your retirement timeline
Here's the variable most retirement calculators leave out entirely. Advisory fees are one of the most misunderstood variables in retirement planning — not because anyone is concealing them, but because they're rarely translated into terms that matter to retirees: years and months of income.
According to the 2024 Kitces Research survey of 621 U.S. financial advisors, the median assets-under-management (AUM) advisory fee is 1.0% on portfolios up to $1 million. Ninety-two percent of advisors use AUM fees in some form. Here's how that fee translates to retirement sustainability:
How advisory fees affect retirement sustainability by portfolio size
Portfolio | Years at 0% fee | Years at 1.0% fee | Difference | Typical services included at 1% |
|---|---|---|---|---|
$300,000 | 30+ | 24.6 | 5.4 years | Financial plan, tax guidance, rebalancing, behavioral coaching |
$500,000 | 30+ | 26.4 | 3.6 years | Comprehensive planning, tax-loss harvesting, estate coordination |
$750,000 | 30+ | 28.3 | 1.7 years | Multi-account optimization, Roth conversion strategy, family planning |
$1,000,000 | 30+ | 30+ | ~0 years | Full-service wealth management, estate planning, multi-generational coordination |
Based on 3.9% withdrawal rate + average SS. Advisory fees typically cover financial planning, tax optimization, rebalancing, behavioral coaching, and estate coordination — the value of these services varies by advisor and client situation. Fund expense ratios (0.03–0.50%) are additional.
The impact is real — but so is the value. Vanguard's research on "Advisor's Alpha" estimates that a good financial advisor adds approximately 3% in net returns through a combination of behavioral coaching (~1.5%), tax-loss harvesting (~0.0–0.75%), asset allocation (~0.35%), and withdrawal strategy (~0.70%). Russell Investments' 2024 "Value of an Advisor" study estimates the annual value at approximately 3.54% across rebalancing, behavioral coaching, planning, and tax management. The question isn't whether advisory fees cost money. It's whether the services those fees pay for deliver value that exceeds the cost — and for many retirees with complex financial situations, the research suggests they can.
When advisory fees earn their keep
For many retirees, the answer is yes. Behavioral coaching alone — preventing panic selling in downturns, maintaining discipline in bull markets, and keeping clients anchored to their long-term plan — accounts for approximately 1.5% of the 3% Advisor's Alpha that Vanguard attributes to good financial advice. Tax-loss harvesting, Roth conversion timing, Social Security optimization, and coordinated estate planning can each add measurable value that's difficult to replicate on your own. The advisory relationship tends to deliver the most value when: the situation involves multiple account types (pre-tax, Roth, taxable), when tax planning is complex, when a household needs coordinated estate strategies, or when behavioral discipline during market volatility has historically been a challenge. A $500,000 portfolio with a strong advisory relationship may outperform a self-managed $600,000 portfolio after accounting for behavioral mistakes and missed tax strategies.
The fee equation shifts when: the portfolio is simple (one or two index funds in a single account), the investor is disciplined and tax-aware, or the advisory services don't include the planning components listed above. A retiree paying 1% for portfolio management alone — without financial planning, tax guidance, or behavioral coaching — may be paying for less than the fee implies. But that same 1% fee bundled with comprehensive planning, tax strategy, and behavioral coaching may represent strong value — the only way to know is to see what's included.
So how do you tell the difference? Start with what you can see. The question isn't whether advisory fees are worth paying. It's whether the services behind a given fee deliver value that matches the cost — and seeing the numbers makes that an informed decision rather than an invisible one. Truthifi's Fee X-Ray identifies every fee across every account — AUM charges, fund expense ratios, trading costs, platform fees — and translates them into dollar costs so you can evaluate your fee structure alongside the services you receive. The table above uses averages. Fee X-Ray shows your real number.
Good advisors welcome this kind of clarity. The best advisors want informed clients — it makes the relationship stronger, and it ensures the value they provide is visible. For a deeper look at how AUM fees specifically affect retirement income over time, see how much longer your savings would last without advisor fees.
See how your fees compare — Fee X-Ray shows every dollar and what it covers.
Social Security timing: when to claim for maximum income
Social Security provides approximately 40% of the average retiree's total income, with 66% of retirees calling it a major source.
The average monthly benefit is $2,071 as of January 2026, reflecting a 2.8% COLA (~$56/month increase). But your benefit depends heavily on when you claim.
Social Security benefit by claiming age
Claiming age | Monthly benefit | % of FRA benefit | Annual income |
|---|---|---|---|
62 (earliest) | ~$1,450 | 70% (30% reduction) | $17,400 |
67 (FRA for 1960+) | $2,071 | 100% | $24,852 |
70 (maximum) | ~$2,568 | 124% (8%/year delayed credits) | $30,816 |
Based on average benefit at FRA of $2,071/month per SSA, January 2026. Maximum benefit at FRA in 2026 is $4,152/month.
Delaying Social Security from age 62 to age 70 increases the monthly benefit by approximately 76%. That's the single most impactful retirement income decision for many retirees.
So when does delaying actually pay off? Our break-even analysis shows the crossover point:
Cumulative Social Security benefits by claiming age
Age reached | Cumulative at 62 | Cumulative at 67 | Cumulative at 70 | Leader |
|---|---|---|---|---|
70 | $142,920 | $99,408 | $30,816 | 62 |
75 | $231,060 | $198,816 | $185,256 | 62 |
80 | $318,540 | $323,076 | $344,904 | 70 |
85 | $405,720 | $447,336 | $501,024 | 70 |
90 | $492,720 | $571,596 | $656,736 | 70 |
Nominal dollars with 2.8% annual COLA. In inflation-adjusted terms, the break-even shifts slightly later (age 82–83). Simplified model — a full actuarial analysis would incorporate survival probabilities.
The break-even point for claiming at 62 vs. 70 occurs around age 80–81. Retirees who live past 82 receive significantly more — potentially $150,000+ more in cumulative lifetime benefits — by delaying to 70. For a 65-year-old couple, there's roughly a 50% chance that at least one spouse lives to 90, per SSA life tables.
Here's a way to think about it: delaying Social Security to 70 can add roughly as many retirement years as optimizing your fee structure on a $500,000 portfolio. Both are high-impact levers worth evaluating. If you're healthy and can bridge 5–8 years of income from savings, delaying is like buying an inflation-adjusted annuity at 8% per year.
One more number: the standard Medicare Part B premium for 2026 is $202.90/month. If you retire before 65, budget $500–$800/month for ACA marketplace healthcare until Medicare kicks in.
For spousal strategies and the earnings test, see our Social Security Optimization Guide.
What to do if your savings won't last
If the numbers above suggest your savings are tight, here's the part that matters most. You have more options than you think.
The 2024 EBRI Retirement Confidence Survey found that 7 in 10 workers expect to work at least part-time in retirement, and half of current retirees retired earlier than expected — nearly 7 in 10 of those for reasons outside their control. Planning for flexibility matters.
Here's what moves the needle most:
Understanding your total financial picture is one of the most actionable steps. The scenarios in this article use averages. Your number depends on your savings, Social Security estimate, spending, and location. Truthifi's Score runs 100+ diagnostic checks across your entire financial picture and produces a single health rating that accounts for fees, diversification, risk alignment, and withdrawal sustainability. The difference between "am I okay?" and "I know I'm okay" is seeing your own data.
Evaluate whether the value of the financial advice you receive matches the cost. If the advisory fee on your account is 1% on $500K, that represents $5,000 in year one. The question worth asking isn't just "how much am I paying?" — it's "what am I getting for it?" Comprehensive financial planning, tax strategy that may save 0.50–0.70% annually in tax drag, and behavioral coaching that kept investors in the market through downturns worth 8+ percentage points — those services can be worth well more than 1%. But if you're paying for portfolio management alone without those planning services, the gap between what you're paying and what you could be paying may be significant. A conversation with your advisor about exactly what's included is one of the most productive steps you can take.
And here are the other levers that move the math. Social Security timing is one of the highest-impact decisions most retirees can influence. Delaying claiming from 62 to even 67 means a 30% increase in monthly income — for life. From 67 to 70, another 24%. The bridge income from your portfolio to cover 3–8 years of delayed claiming is one of the best "investments" a retiree can make.
Healthcare is the expense most retirees underestimate. According to Fidelity's 2025 Retiree Health Care Cost Estimate, a 65-year-old retiring in 2025 can expect to spend approximately $172,500 individually — or roughly $345,000 per couple — on healthcare and medical expenses throughout retirement. That estimate does not include long-term care. For retirees between 55 and 64 — those who've left the workforce but aren't yet eligible for Medicare — the gap can cost $500–$800/month through the ACA marketplace or COBRA continuation coverage. This healthcare bridge is one of the biggest planning factors for early retirees.
Flexible withdrawal strategies meaningfully increase lifetime spending. Switching from a fixed 3.9% withdrawal to a guardrails approach at 5.2% increases starting income by 33%. The trade-off is adjusting down in bad market years — but for most retirees, that flexibility extends both income and portfolio life.
Location dramatically affects sustainability. The difference between California and Tennessee could mean 7+ years of portfolio sustainability on $500K. For retirees who aren't geographically locked, the state-adjusted numbers above are worth a serious look.
And remember: real retirement spending declines about 1% per year. The "spending smile" means your early-retirement budget isn't your forever budget. You'll likely spend less in your 70s and 80s than you do in your mid-60s.
Retirement planning isn't a one-time event. Truthifi's Dashboard monitors your accounts continuously, flagging changes in fees, drift in allocation, and shifts in your sustainability outlook — automatically. The numbers in this article are a snapshot. Your financial life isn't.
If your situation is complex — multiple income sources, tax-deferred and Roth accounts, rental properties, a pension, coordinating with a spouse — a fee-only financial planner (look for NAPFA members) is worth the investment. The goal isn't to avoid professional help. It's to understand your own numbers so you can have a better conversation with a professional.
If the calculator shows you're short, don't panic — here's what to do if you're behind on savings with realistic, age-specific recovery strategies. For a comprehensive view beyond just "will my money last," get your overall retirement readiness score covering all five dimensions of retirement preparedness.
You've read this far because you're the kind of person who asks hard questions about your own money — and that puts you ahead of most.
You've done the math. Now monitor it. Get your Score — 2 minutes, costs nothing.
Frequently asked questions about retirement savings sustainability
How much do I need to retire?
There's no single number — it depends on your spending, location, Social Security benefit, and fees. But a useful starting framework: at a 3.9% withdrawal rate, you need roughly 25 times your annual spending gap (the difference between what you spend and what Social Security covers). For someone spending $4,000/month with $2,071 in SS, that gap is ~$23,000/year — suggesting a target around $590,000. But that's a floor, not a ceiling, and the variables matter enormously. For retirees without a pension — which is the majority of today's private-sector workforce — Social Security plus personal savings are the primary income sources, making withdrawal strategy and fee management even more critical.
How long will $500,000 last in retirement?
With a 3.9% withdrawal rate ($19,500/year) plus average Social Security benefits ($2,071/month), $500,000 can sustain approximately $3,700 in monthly spending for 26–30+ years, depending on advisory fees. Without fees, $500K lasts 30+ years. A 1% AUM advisory fee shortens that by approximately 3–4 years. Use Truthifi's free simulator to model your specific numbers.
Is the 4% rule still valid in 2026?
As a starting point, yes — but updated research refines it. Morningstar's 2025 study puts the safe withdrawal rate at 3.9% for fixed withdrawals over 30 years with 90% success. Flexible strategies like guardrails can push starting rates to 5.2–5.7%. The 4% rule remains a useful floor, not a ceiling.
Can I retire at 62 with $500,000?
It's possible but requires trade-offs. Social Security at 62 is reduced by ~30% (to about $1,450/month). You'll need to bridge healthcare costs of $500–$800/month until Medicare at 65. With careful spending and a low-fee portfolio, $500K plus reduced SS can work — but the margins are tight. Delaying SS even a few years significantly improves sustainability.
How long will $1 million last in retirement?
At a 3.9% withdrawal rate ($39,000/year) plus average Social Security ($2,071/month), $1 million sustains roughly $5,300 in monthly spending for 30+ years. Even with a 1% advisory fee, $1M comfortably lasts 28+ years. Most retirees with $1M and average SS are well-positioned for a 30-year retirement.
Can I live on Social Security alone?
The average SS benefit is $2,071/month (January 2026), while average retiree spending is roughly $4,000–$4,800/month. SS covers about 40–50% of typical expenses. Living on SS alone requires very low expenses or supplemental income. Most financial planners recommend treating SS as a foundation, not the entire plan.
What is sequence of returns risk?
Sequence of returns risk is the danger that poor market performance in your first 5–10 years of retirement permanently depletes your portfolio faster than expected — even if long-term average returns are normal. A 20% market drop in year 1 of retirement is far more damaging than the same drop in year 20. Guardrails strategies and bucket approaches help manage this risk.
Should I delay Social Security to 70?
For most healthy retirees with bridge income, yes. Delaying from 62 to 70 increases your benefit by approximately 76%. The break-even point is around age 80–82 — if you live past 82, delaying to 70 yields significantly more in cumulative lifetime benefits. The exception: if you're in poor health or have no other income to bridge the gap.
How much should I spend per month in retirement?
The average household age 65+ spends approximately $4,000–$4,800 per month, per the BLS Consumer Expenditure Survey. Spending tends to peak in early retirement (travel, hobbies), decline through the mid-70s to 80s, then rise slightly with healthcare costs — a pattern researchers call the "spending smile." Your number depends on housing costs, location, healthcare, and lifestyle.
What is the guardrails withdrawal strategy?
The guardrails strategy adjusts your annual spending up or down (typically by 10%) based on portfolio performance. If your portfolio grows significantly, you increase spending; if it drops, you pull back. Morningstar's research shows guardrails support a starting withdrawal rate of 5.2% — 33% higher than the fixed 3.9% approach — because the flexibility reduces sequence risk.
How much do retirement fees cost me?
A typical 1% AUM advisory fee on a $500,000 portfolio represents approximately $83,000–$95,000 in total fees over a 20-year retirement. In sustainability terms, that's roughly 3–4 fewer years of portfolio income. However, the services those fees cover — financial planning, tax optimization that can save 0.50–0.70% annually, behavioral coaching worth approximately 1.5% per year in prevented mistakes, and estate coordination — can offset or exceed that cost for many investors. The key is understanding whether the specific services you receive match the price you're paying. Truthifi's Fee X-Ray can show your exact fee breakdown alongside what those fees cover.
How long will $300,000 last in retirement?
At a 3.9% withdrawal rate ($11,700/year) plus average SS ($2,071/month), $300,000 sustains approximately $3,000/month for 25–30 years with low fees. The margins are tighter than larger portfolios, and fees have a bigger impact — a 1% AUM fee can reduce sustainability by 5+ years. Keeping investment costs low is critical at this portfolio size.
When do required minimum distributions start?
Under SECURE 2.0, you must begin taking required minimum distributions (RMDs) from tax-deferred retirement accounts — 401(k)s, traditional IRAs — at age 73. RMDs are calculated based on your account balance and life expectancy. They're taxable income, which can affect your Social Security taxation and Medicare premiums. Planning your withdrawal strategy around RMD timing can reduce your lifetime tax bill significantly.
What is the retirement spending smile?
The retirement spending smile describes how retiree spending follows a curve: higher in the "go-go" years (65–75, travel and hobbies), lower in the "slow-go" years (75–85, less activity), then rising slightly in the "no-go" years (85+, healthcare costs). Research by David Blanchett shows real spending declines about 1% per year, suggesting many retirees oversave for late retirement.
Read next from the Truthifi blog
Understanding Financial Advisor Fees — How AUM fees, flat fees, and fund expense ratios affect your portfolio over time.
Social Security Claiming Strategies — Spousal benefits, the earnings test, tax implications, and optimal claiming ages.
The 4% Rule: Still Valid? — From Bengen's 1994 research to Morningstar's 2025 update.
Disclaimer
This article is for educational purposes and does not constitute financial advice. Consult a qualified financial professional for personalized guidance. All calculations in this article use simplified assumptions (level real withdrawals, constant returns, simplified tax treatment) and are intended as directional baseline models — not predictions or guarantees. Actual results will vary based on market performance, tax treatment, spending patterns, healthcare costs, and other individual factors.
Truthifi is not a financial advisor. Truthifi is an investment monitoring platform that earns revenue from subscriptions — not from advisory fees, commissions, or referrals.
All statistics verified as of February 2026. Sources linked inline throughout.
The fee equation: what advisory costs mean for your retirement timeline
Here's the variable most retirement calculators leave out entirely. Advisory fees are one of the most misunderstood variables in retirement planning — not because anyone is concealing them, but because they're rarely translated into terms that matter to retirees: years and months of income.
According to the 2024 Kitces Research survey of 621 U.S. financial advisors, the median assets-under-management (AUM) advisory fee is 1.0% on portfolios up to $1 million. Ninety-two percent of advisors use AUM fees in some form. Here's how that fee translates to retirement sustainability:
How advisory fees affect retirement sustainability by portfolio size
Portfolio | Years at 0% fee | Years at 1.0% fee | Difference | Typical services included at 1% |
|---|---|---|---|---|
$300,000 | 30+ | 24.6 | 5.4 years | Financial plan, tax guidance, rebalancing, behavioral coaching |
$500,000 | 30+ | 26.4 | 3.6 years | Comprehensive planning, tax-loss harvesting, estate coordination |
$750,000 | 30+ | 28.3 | 1.7 years | Multi-account optimization, Roth conversion strategy, family planning |
$1,000,000 | 30+ | 30+ | ~0 years | Full-service wealth management, estate planning, multi-generational coordination |
Based on 3.9% withdrawal rate + average SS. Advisory fees typically cover financial planning, tax optimization, rebalancing, behavioral coaching, and estate coordination — the value of these services varies by advisor and client situation. Fund expense ratios (0.03–0.50%) are additional.
The impact is real — but so is the value. Vanguard's research on "Advisor's Alpha" estimates that a good financial advisor adds approximately 3% in net returns through a combination of behavioral coaching (~1.5%), tax-loss harvesting (~0.0–0.75%), asset allocation (~0.35%), and withdrawal strategy (~0.70%). Russell Investments' 2024 "Value of an Advisor" study estimates the annual value at approximately 3.54% across rebalancing, behavioral coaching, planning, and tax management. The question isn't whether advisory fees cost money. It's whether the services those fees pay for deliver value that exceeds the cost — and for many retirees with complex financial situations, the research suggests they can.
When advisory fees earn their keep
For many retirees, the answer is yes. Behavioral coaching alone — preventing panic selling in downturns, maintaining discipline in bull markets, and keeping clients anchored to their long-term plan — accounts for approximately 1.5% of the 3% Advisor's Alpha that Vanguard attributes to good financial advice. Tax-loss harvesting, Roth conversion timing, Social Security optimization, and coordinated estate planning can each add measurable value that's difficult to replicate on your own. The advisory relationship tends to deliver the most value when: the situation involves multiple account types (pre-tax, Roth, taxable), when tax planning is complex, when a household needs coordinated estate strategies, or when behavioral discipline during market volatility has historically been a challenge. A $500,000 portfolio with a strong advisory relationship may outperform a self-managed $600,000 portfolio after accounting for behavioral mistakes and missed tax strategies.
The fee equation shifts when: the portfolio is simple (one or two index funds in a single account), the investor is disciplined and tax-aware, or the advisory services don't include the planning components listed above. A retiree paying 1% for portfolio management alone — without financial planning, tax guidance, or behavioral coaching — may be paying for less than the fee implies. But that same 1% fee bundled with comprehensive planning, tax strategy, and behavioral coaching may represent strong value — the only way to know is to see what's included.
So how do you tell the difference? Start with what you can see. The question isn't whether advisory fees are worth paying. It's whether the services behind a given fee deliver value that matches the cost — and seeing the numbers makes that an informed decision rather than an invisible one. Truthifi's Fee X-Ray identifies every fee across every account — AUM charges, fund expense ratios, trading costs, platform fees — and translates them into dollar costs so you can evaluate your fee structure alongside the services you receive. The table above uses averages. Fee X-Ray shows your real number.
Good advisors welcome this kind of clarity. The best advisors want informed clients — it makes the relationship stronger, and it ensures the value they provide is visible. For a deeper look at how AUM fees specifically affect retirement income over time, see how much longer your savings would last without advisor fees.
See how your fees compare — Fee X-Ray shows every dollar and what it covers.
Social Security timing: when to claim for maximum income
Social Security provides approximately 40% of the average retiree's total income, with 66% of retirees calling it a major source.
The average monthly benefit is $2,071 as of January 2026, reflecting a 2.8% COLA (~$56/month increase). But your benefit depends heavily on when you claim.
Social Security benefit by claiming age
Claiming age | Monthly benefit | % of FRA benefit | Annual income |
|---|---|---|---|
62 (earliest) | ~$1,450 | 70% (30% reduction) | $17,400 |
67 (FRA for 1960+) | $2,071 | 100% | $24,852 |
70 (maximum) | ~$2,568 | 124% (8%/year delayed credits) | $30,816 |
Based on average benefit at FRA of $2,071/month per SSA, January 2026. Maximum benefit at FRA in 2026 is $4,152/month.
Delaying Social Security from age 62 to age 70 increases the monthly benefit by approximately 76%. That's the single most impactful retirement income decision for many retirees.
So when does delaying actually pay off? Our break-even analysis shows the crossover point:
Cumulative Social Security benefits by claiming age
Age reached | Cumulative at 62 | Cumulative at 67 | Cumulative at 70 | Leader |
|---|---|---|---|---|
70 | $142,920 | $99,408 | $30,816 | 62 |
75 | $231,060 | $198,816 | $185,256 | 62 |
80 | $318,540 | $323,076 | $344,904 | 70 |
85 | $405,720 | $447,336 | $501,024 | 70 |
90 | $492,720 | $571,596 | $656,736 | 70 |
Nominal dollars with 2.8% annual COLA. In inflation-adjusted terms, the break-even shifts slightly later (age 82–83). Simplified model — a full actuarial analysis would incorporate survival probabilities.
The break-even point for claiming at 62 vs. 70 occurs around age 80–81. Retirees who live past 82 receive significantly more — potentially $150,000+ more in cumulative lifetime benefits — by delaying to 70. For a 65-year-old couple, there's roughly a 50% chance that at least one spouse lives to 90, per SSA life tables.
Here's a way to think about it: delaying Social Security to 70 can add roughly as many retirement years as optimizing your fee structure on a $500,000 portfolio. Both are high-impact levers worth evaluating. If you're healthy and can bridge 5–8 years of income from savings, delaying is like buying an inflation-adjusted annuity at 8% per year.
One more number: the standard Medicare Part B premium for 2026 is $202.90/month. If you retire before 65, budget $500–$800/month for ACA marketplace healthcare until Medicare kicks in.
For spousal strategies and the earnings test, see our Social Security Optimization Guide.
What to do if your savings won't last
If the numbers above suggest your savings are tight, here's the part that matters most. You have more options than you think.
The 2024 EBRI Retirement Confidence Survey found that 7 in 10 workers expect to work at least part-time in retirement, and half of current retirees retired earlier than expected — nearly 7 in 10 of those for reasons outside their control. Planning for flexibility matters.
Here's what moves the needle most:
Understanding your total financial picture is one of the most actionable steps. The scenarios in this article use averages. Your number depends on your savings, Social Security estimate, spending, and location. Truthifi's Score runs 100+ diagnostic checks across your entire financial picture and produces a single health rating that accounts for fees, diversification, risk alignment, and withdrawal sustainability. The difference between "am I okay?" and "I know I'm okay" is seeing your own data.
Evaluate whether the value of the financial advice you receive matches the cost. If the advisory fee on your account is 1% on $500K, that represents $5,000 in year one. The question worth asking isn't just "how much am I paying?" — it's "what am I getting for it?" Comprehensive financial planning, tax strategy that may save 0.50–0.70% annually in tax drag, and behavioral coaching that kept investors in the market through downturns worth 8+ percentage points — those services can be worth well more than 1%. But if you're paying for portfolio management alone without those planning services, the gap between what you're paying and what you could be paying may be significant. A conversation with your advisor about exactly what's included is one of the most productive steps you can take.
And here are the other levers that move the math. Social Security timing is one of the highest-impact decisions most retirees can influence. Delaying claiming from 62 to even 67 means a 30% increase in monthly income — for life. From 67 to 70, another 24%. The bridge income from your portfolio to cover 3–8 years of delayed claiming is one of the best "investments" a retiree can make.
Healthcare is the expense most retirees underestimate. According to Fidelity's 2025 Retiree Health Care Cost Estimate, a 65-year-old retiring in 2025 can expect to spend approximately $172,500 individually — or roughly $345,000 per couple — on healthcare and medical expenses throughout retirement. That estimate does not include long-term care. For retirees between 55 and 64 — those who've left the workforce but aren't yet eligible for Medicare — the gap can cost $500–$800/month through the ACA marketplace or COBRA continuation coverage. This healthcare bridge is one of the biggest planning factors for early retirees.
Flexible withdrawal strategies meaningfully increase lifetime spending. Switching from a fixed 3.9% withdrawal to a guardrails approach at 5.2% increases starting income by 33%. The trade-off is adjusting down in bad market years — but for most retirees, that flexibility extends both income and portfolio life.
Location dramatically affects sustainability. The difference between California and Tennessee could mean 7+ years of portfolio sustainability on $500K. For retirees who aren't geographically locked, the state-adjusted numbers above are worth a serious look.
And remember: real retirement spending declines about 1% per year. The "spending smile" means your early-retirement budget isn't your forever budget. You'll likely spend less in your 70s and 80s than you do in your mid-60s.
Retirement planning isn't a one-time event. Truthifi's Dashboard monitors your accounts continuously, flagging changes in fees, drift in allocation, and shifts in your sustainability outlook — automatically. The numbers in this article are a snapshot. Your financial life isn't.
If your situation is complex — multiple income sources, tax-deferred and Roth accounts, rental properties, a pension, coordinating with a spouse — a fee-only financial planner (look for NAPFA members) is worth the investment. The goal isn't to avoid professional help. It's to understand your own numbers so you can have a better conversation with a professional.
If the calculator shows you're short, don't panic — here's what to do if you're behind on savings with realistic, age-specific recovery strategies. For a comprehensive view beyond just "will my money last," get your overall retirement readiness score covering all five dimensions of retirement preparedness.
You've read this far because you're the kind of person who asks hard questions about your own money — and that puts you ahead of most.
You've done the math. Now monitor it. Get your Score — 2 minutes, costs nothing.
Frequently asked questions about retirement savings sustainability
How much do I need to retire?
There's no single number — it depends on your spending, location, Social Security benefit, and fees. But a useful starting framework: at a 3.9% withdrawal rate, you need roughly 25 times your annual spending gap (the difference between what you spend and what Social Security covers). For someone spending $4,000/month with $2,071 in SS, that gap is ~$23,000/year — suggesting a target around $590,000. But that's a floor, not a ceiling, and the variables matter enormously. For retirees without a pension — which is the majority of today's private-sector workforce — Social Security plus personal savings are the primary income sources, making withdrawal strategy and fee management even more critical.
How long will $500,000 last in retirement?
With a 3.9% withdrawal rate ($19,500/year) plus average Social Security benefits ($2,071/month), $500,000 can sustain approximately $3,700 in monthly spending for 26–30+ years, depending on advisory fees. Without fees, $500K lasts 30+ years. A 1% AUM advisory fee shortens that by approximately 3–4 years. Use Truthifi's free simulator to model your specific numbers.
Is the 4% rule still valid in 2026?
As a starting point, yes — but updated research refines it. Morningstar's 2025 study puts the safe withdrawal rate at 3.9% for fixed withdrawals over 30 years with 90% success. Flexible strategies like guardrails can push starting rates to 5.2–5.7%. The 4% rule remains a useful floor, not a ceiling.
Can I retire at 62 with $500,000?
It's possible but requires trade-offs. Social Security at 62 is reduced by ~30% (to about $1,450/month). You'll need to bridge healthcare costs of $500–$800/month until Medicare at 65. With careful spending and a low-fee portfolio, $500K plus reduced SS can work — but the margins are tight. Delaying SS even a few years significantly improves sustainability.
How long will $1 million last in retirement?
At a 3.9% withdrawal rate ($39,000/year) plus average Social Security ($2,071/month), $1 million sustains roughly $5,300 in monthly spending for 30+ years. Even with a 1% advisory fee, $1M comfortably lasts 28+ years. Most retirees with $1M and average SS are well-positioned for a 30-year retirement.
Can I live on Social Security alone?
The average SS benefit is $2,071/month (January 2026), while average retiree spending is roughly $4,000–$4,800/month. SS covers about 40–50% of typical expenses. Living on SS alone requires very low expenses or supplemental income. Most financial planners recommend treating SS as a foundation, not the entire plan.
What is sequence of returns risk?
Sequence of returns risk is the danger that poor market performance in your first 5–10 years of retirement permanently depletes your portfolio faster than expected — even if long-term average returns are normal. A 20% market drop in year 1 of retirement is far more damaging than the same drop in year 20. Guardrails strategies and bucket approaches help manage this risk.
Should I delay Social Security to 70?
For most healthy retirees with bridge income, yes. Delaying from 62 to 70 increases your benefit by approximately 76%. The break-even point is around age 80–82 — if you live past 82, delaying to 70 yields significantly more in cumulative lifetime benefits. The exception: if you're in poor health or have no other income to bridge the gap.
How much should I spend per month in retirement?
The average household age 65+ spends approximately $4,000–$4,800 per month, per the BLS Consumer Expenditure Survey. Spending tends to peak in early retirement (travel, hobbies), decline through the mid-70s to 80s, then rise slightly with healthcare costs — a pattern researchers call the "spending smile." Your number depends on housing costs, location, healthcare, and lifestyle.
What is the guardrails withdrawal strategy?
The guardrails strategy adjusts your annual spending up or down (typically by 10%) based on portfolio performance. If your portfolio grows significantly, you increase spending; if it drops, you pull back. Morningstar's research shows guardrails support a starting withdrawal rate of 5.2% — 33% higher than the fixed 3.9% approach — because the flexibility reduces sequence risk.
How much do retirement fees cost me?
A typical 1% AUM advisory fee on a $500,000 portfolio represents approximately $83,000–$95,000 in total fees over a 20-year retirement. In sustainability terms, that's roughly 3–4 fewer years of portfolio income. However, the services those fees cover — financial planning, tax optimization that can save 0.50–0.70% annually, behavioral coaching worth approximately 1.5% per year in prevented mistakes, and estate coordination — can offset or exceed that cost for many investors. The key is understanding whether the specific services you receive match the price you're paying. Truthifi's Fee X-Ray can show your exact fee breakdown alongside what those fees cover.
How long will $300,000 last in retirement?
At a 3.9% withdrawal rate ($11,700/year) plus average SS ($2,071/month), $300,000 sustains approximately $3,000/month for 25–30 years with low fees. The margins are tighter than larger portfolios, and fees have a bigger impact — a 1% AUM fee can reduce sustainability by 5+ years. Keeping investment costs low is critical at this portfolio size.
When do required minimum distributions start?
Under SECURE 2.0, you must begin taking required minimum distributions (RMDs) from tax-deferred retirement accounts — 401(k)s, traditional IRAs — at age 73. RMDs are calculated based on your account balance and life expectancy. They're taxable income, which can affect your Social Security taxation and Medicare premiums. Planning your withdrawal strategy around RMD timing can reduce your lifetime tax bill significantly.
What is the retirement spending smile?
The retirement spending smile describes how retiree spending follows a curve: higher in the "go-go" years (65–75, travel and hobbies), lower in the "slow-go" years (75–85, less activity), then rising slightly in the "no-go" years (85+, healthcare costs). Research by David Blanchett shows real spending declines about 1% per year, suggesting many retirees oversave for late retirement.
Read next from the Truthifi blog
Understanding Financial Advisor Fees — How AUM fees, flat fees, and fund expense ratios affect your portfolio over time.
Social Security Claiming Strategies — Spousal benefits, the earnings test, tax implications, and optimal claiming ages.
The 4% Rule: Still Valid? — From Bengen's 1994 research to Morningstar's 2025 update.
Disclaimer
This article is for educational purposes and does not constitute financial advice. Consult a qualified financial professional for personalized guidance. All calculations in this article use simplified assumptions (level real withdrawals, constant returns, simplified tax treatment) and are intended as directional baseline models — not predictions or guarantees. Actual results will vary based on market performance, tax treatment, spending patterns, healthcare costs, and other individual factors.
Truthifi is not a financial advisor. Truthifi is an investment monitoring platform that earns revenue from subscriptions — not from advisory fees, commissions, or referrals.
All statistics verified as of February 2026. Sources linked inline throughout.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
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