Living to 100 was once a rare event—now it’s a growing reality. Advances in healthcare, diet, and technology mean more people are not just living longer but staying active well into their 90s and beyond. But with that gift of time comes a new challenge: Will your retirement savings last if you live to 100?
This isn’t just a theoretical question. It’s one every retiree or pre-retiree should be asking. Let’s break down the key factors that determine how long your money will last and what you can do to make sure you’re covered—no matter how long your retirement lasts.
Why Planning for a 100-Year Life Is the New Smart
Gone are the days when planning for a 20‑year retirement was enough. Today, if you retire in your mid‑60s, you might need your savings to support you for 30–35 years—or even more. What seemed conservative a decade ago is now essential. Here’s why this matters:
Longevity is increasing
Per the cohort life tables of Social Security Administration (SSA), someone who reaches age 65 today can expect to live significantly longer than previous generations—many into their 90s, and a meaningful number to 100. In fact, SSA data suggests that a 65‑year‑old female today has a roughly 1‑in‑7 chance of reaching age 100.
Running out of money is a top concern
Surveys show retirees consider outliving their savings a greater fear than death. Even though Social Security and pensions can help, they aren’t enough to cover decades-long living expenses.
So, what does it take to make sure your nest egg lasts up to 35 years—or longer?
How Much Do You Need to Retire for 35+ Years?
There’s no universal number that guarantees financial security in retirement, especially when planning for a life that could stretch into your 90s or even 100s. But you can use proven frameworks to estimate what you might need and adjust from there.
One of the most popular tools for this is the 4% rule, which suggests that you can safely withdraw 4% of your retirement savings each year (adjusted for inflation) and expect your money to last for about 30 years. This rule assumes a balanced portfolio of stocks and bonds and is based on historical market returns.
Example Breakdown:
Let’s say you’ve saved $1 million by the time you retire.
- 4% of $1,000,000 = $40,000 per year
- If you’re also collecting $25,000 per year from Social Security, that gives you a total annual income of $65,000
That might be enough depending on your lifestyle, spending habits, and where you live. But here’s the catch: the 4% rule is designed for a 30-year retirement.
If you retire at 65 and live to 100, that’s 35 years or more. In this case, many financial experts recommend dialing that withdrawal rate down to 3.3% or even 3.0% to avoid depleting your savings too soon.
Why Be More Conservative?
Because:
- You’re planning for more years without income
- Healthcare costs may rise significantly in your later years
- You need your money to withstand inflation and potential market downturns
In short, the longer you expect to live, the smaller your safe withdrawal rate should be to ensure your funds last.
How to Know If Your Savings Will Last to Age 100
Retirement success isn’t just about how much money you have. It’s about how you use and protect it. Before you decide whether you’re on track, ask yourself these five key questions:
1. How much do I plan to spend each year?
Your annual expenses will drive how much you need to withdraw. This includes:
- Basic living costs (housing, food, transportation)
- Travel and leisure
- Health insurance premiums
- Unexpected expenses (repairs, family support)
Be realistic. Many people underestimate lifestyle costs in retirement, especially in the first 10–15 years when they’re still active.
2. What sources of income will I have?
In addition to your retirement savings, consider:
- Social Security
- Pensions or annuities
- Rental income
- Part-time work or consulting
- Dividends or interest from investments
The more you can rely on guaranteed income, the less pressure there is on your savings to cover everything.
3. How is my money invested?
The mix of stocks, bonds, and other assets in your portfolio plays a huge role in how long your money lasts. A well-diversified portfolio has a better chance of keeping up with inflation and recovering from market dips.
4. How much risk am I taking with my investments?
Too much risk and you could face big losses in a market downturn. Too little risk and your money may not grow fast enough. Striking the right balance—especially as you age—is key.
5. Do I have a plan for healthcare and long-term care?
Many people plan for daily living expenses but don’t fully account for rising medical costs or the need for in-home care, assisted living, or nursing facilities. A solid retirement plan includes a strategy for managing these costs.
How Long Will My Retirement Savings Last?
Use This Formula to Estimate Your Retirement Longevity
You don’t need to be a math whiz to run a simple estimate. This basic formula gives you a quick reality check:
Total Retirement Savings ÷ Annual Withdrawals = Years Your Savings Will Last
For Example:
Let’s say you’ve saved $800,000 and expect to withdraw $35,000 per year:
$800,000 ÷ $35,000 = ~22.8 years
That gets you to around age 87 or 88 if you retire at 65—not quite 100.
So, what can you do? You might:
- Lower your annual withdrawals
- Supplement your income (with part-time work, rental income, etc.)
- Reduce expenses or delay large purchases
- Reallocate your investments to aim for higher growth
You don’t need a perfect number, but this formula helps you see whether you’re likely to outlive your savings—and gives you time to pivot.
What Can Shorten the Life of Your Savings?
Even the best financial plan can hit roadblocks. Here are the top four threats to your retirement savings—and how they can shrink your timeline:
1. Inflation
Even at just 3% per year, inflation quietly erodes your buying power over time. What costs $50,000 today could cost nearly $100,000 in 25 years. Essentials like groceries, gas, insurance, and utilities may creep up every year—and healthcare tends to inflate even faster.
2. Healthcare Costs
Medicare starts at age 65, but it doesn’t cover everything. You’ll still need to budget for:
- Premiums
- Deductibles
- Prescription drugs
- Dental, vision, and hearing services
- Long-term care (which isn’t covered by Medicare at all)
The average couple could easily spend $300,000 or more in retirement just on healthcare. If you don’t plan for this, it could eat a big chunk of your savings.
3. Market Volatility
Retirees are particularly vulnerable to what’s called sequence of returns risk. If the market drops in the early years of your retirement and you’re withdrawing funds, you may lock in losses that your portfolio can’t recover from—even if markets later rebound.
4. Unplanned Expenses
Unexpected costs pop up more often than you’d think:
- Major home repairs (roof, HVAC, foundation issues)
- Helping children or grandchildren financially
- Relocating or adapting your home for accessibility
- Emergency travel or caregiving
Any of these can throw your budget off course if you haven’t built in enough flexibility.
How Can I Make My Money Last If I Live to 100?
Here’s the good news: You don’t need to be a millionaire to make your retirement work for 35+ years. What you do need is a smart strategy and flexibility. Here are some proven ways to make your money go further:
1. Delay Social Security
For every year you delay collecting benefits past full retirement age (up to age 70), your benefit increases by about 8%. That’s a guaranteed, risk-free return.
If you’re worried about outliving your money, delaying Social Security gives you a higher baseline income in your later years when other savings may be lower.
2. Work a Bit Longer
Working even 2–3 more years can:
- Increase your Social Security benefit
- Let you save more while postponing withdrawals
- Give your investments more time to grow
This doesn’t mean staying in a stressful job forever. Even part-time work or consulting can make a significant difference.
3. Adjust Your Withdrawal Rate
The traditional 4% rule may be too aggressive for a 35-year retirement. Consider lowering it to 3.0–3.3% and adjusting year to year based on market performance.
Some people follow a dynamic withdrawal strategy—spending less when markets are down and a little more when they’re up. This kind of flexibility helps stretch your savings.
4. Downsize or Relocate
Your home is likely your biggest expense. Downsizing or moving to a lower-cost area can:
- Cut your housing and maintenance costs
- Free up home equity
- Lower your property taxes and utility bills
For some retirees, this move alone adds years to their financial runway.
5. Stay Invested (Wisely)
While it’s tempting to move everything into cash or bonds in retirement, doing so can leave you vulnerable to inflation.
A better strategy is to stay strategically invested—usually in a balanced portfolio that still includes some stocks for long-term growth, along with safer assets for stability and income.
What About Healthcare and Long-Term Care?
Healthcare is often the biggest wildcard in retirement—and one of the most expensive.
Here’s What to Plan For:
- Medicare starts at 65, but you’ll need supplemental plans to cover all your needs. And it doesn’t cover dental, vision, hearing, or long-term care.
- Long-term care—like home health aides, assisted living, or nursing homes—isn’t covered by Medicare. Without a plan, these services can drain your savings quickly.
- Out-of-pocket medical expenses for the average couple in retirement are often in the six-figure range.
What You Can Do:
- Consider a long-term care insurance policy while you’re still healthy and eligible.
- Open and fund a Health Savings Account (HSA) if you’re still working and eligible. HSAs offer triple tax advantages and can be used for qualified healthcare expenses in retirement.
- Set aside a separate savings fund specifically for medical costs to protect your core retirement income.
How a Fiduciary Financial Advisor Can Help
Let’s face it—navigating retirement planning for a 100-year life is complex. That’s where a fiduciary financial advisor can be incredibly valuable.
Unlike advisors who may earn commissions by selling products, fiduciary advisors are legally required to act in your best interest. They can help you:
- Create a sustainable withdrawal strategy
- Plan for healthcare and long-term care costs
- Balance investment risk with longevity needs
- Monitor and adjust your plan over time
When you’re potentially planning for 35 years of retirement, having an experienced pro in your corner is worth it.
What’s a Safe Withdrawal Rate If I Might Live to 100?
The 4% rule was designed for 30-year retirements. If you’re planning for 35+ years, consider adjusting it to 3.0%–3.5%, especially if you want to be cautious.
But instead of sticking to one number, a dynamic withdrawal strategy—one that adjusts annually based on market returns and spending needs—is even better. This helps preserve your savings in down years and gives you flexibility when times are good.
Tools You Can Use to Run the Numbers
You don’t have to guess. Several free tools can help you model your retirement plan:
- FIRECalc – Models your plan using historical market data
- Vanguard Retirement Nest Egg Calculator – Estimates how long your savings will last
- NewRetirement – A comprehensive planning tool with future healthcare estimates
- SmartAsset’s Retirement Calculator – Offers side-by-side comparisons with different inputs
Real-Life Scenarios: What If…
What If I Have $500,000 at Retirement?
- At a 3.5% withdrawal rate, you’d have $17,500 per year from savings.
- Add $20,000–$30,000 from Social Security, and you may need to cut costs or downsize to make it work long-term.
What If I Still Have a Mortgage?
- Paying it off before retirement is ideal.
- If not, refinance for a lower rate or consider a reverse mortgage later on.
What If I Want to Travel?
- Budget for it upfront and prioritize early retirement years when you’re healthiest.
- Consider cutting back later to extend your funds.
In Summary
Living to 100 is no longer just a fantasy—it’s something you might need to be financially ready for. While that can feel overwhelming, the solution lies in early planning, smart spending, and flexible strategies.
With the right approach and guidance—especially from a fiduciary financial advisor—you can turn 100 into a celebration of life, not a fear of running out of money.
Because the real question isn’t just how long will my retirement savings last if I live to 100?
It’s: How do I make sure my life stays rich—in every way—until then?
