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How long will $200,000 last at $20,000 a year?

12 years at a steady 5% return, with the $20,000 ($1,667 a month) raised 2% a year for inflation. Below: the balance year by year, the odds in 1,000 simulated markets, what other returns do, Social Security, the tax on the withdrawal, and a calculator set to these numbers.

Short answer: About 12 years at a steady 5% return, with the $20,000 raised 2% a year for inflation: retiring at 60 it runs out at age 71, at 65 at age 76. That is 10% of $200,000 in the first year. At 7% it lasts 14 years; at 3%, 11 years.

$200,000 at $20,000 a year, year by year

Starting at 65, the money runs out at age 76. The withdrawal grows 2% a year, so by year 20 it is $29,136; the balance earns 5% on what is left after each withdrawal.

$200,000, $20,000 a year rising 2%, 5% return, from age 65
YearAgeBalance at startWithdrawalBalance at end
165$200,000$20,000$189,000
266$189,000$20,400$177,030
367$177,030$20,808$164,033
468$164,033$21,224$149,949
569$149,949$21,649$134,716
670$134,716$22,082$118,266
771$118,266$22,523$100,530
872$100,530$22,974$81,434
973$81,434$23,433$60,901
1074$60,901$23,902$38,849
1175$38,849$24,380$15,192
1276$15,192$15,192$0

The odds $200,000 lasts at $20,000 a year

Returns arrive in a random order, and a few bad years early do the most damage. In 1,000 simulated markets, this is the share in which $20,000 a year, rising with inflation, still leaves money in the account after each number of years.

Chance $20,000 a year from $200,000 lasts, 1,000 simulated markets
ForTrinity-style (7%, 12%)Cautious (5%, 15%)
20 years4%4%
25 years1%2%
30 years0%1%
35 years0%0%
40 years0%0%

What other returns and inflation do

Years $20,000 a year from $200,000 lasts, by return and yearly raise
ReturnNo raise2% raise3% raise
3%12 years11 years10 years
4%13 years11 years11 years
5%14 years12 years11 years
6%15 years13 years12 years
7%16 years14 years13 years

$20,000 a year from other balances

Years $20,000 a year lasts, by balance, 5% return
BalanceLasts
$200,00012 years
$250,00016 years
$300,00020 years
$350,00024 years
$400,00030 years
$450,00036 years
$500,00044 years
$600,00060+ years

Tax on a $20,000 withdrawal

From a traditional 401(k) or IRA, the whole withdrawal is ordinary income, and it can make more of your Social Security taxable. Federal tax it adds at 65 on 2026 rules, estimates:

Federal tax a $20,000 withdrawal adds at 65
HouseholdFederal taxShare of the withdrawal
Single, $24,000 of Social Security$00%
Married, $42,000 of Social Security$00%

Roth withdrawals after 59½ and a five-year holding period are tax-free; money in a taxable account is taxed only on the gains. The retirement tax calculator adds state tax.

The calculator, set to these numbers

Your money lasts12 yearsRuns out around age 76
Most you can withdraw for 30 years$9,837 a year$820 a month, rising with inflation
Taken from the portfolio$20,000 a year10.0% of the portfolio in year one

Taking $20,000 a year ($1,667 a month) from $200,000, raised 2.0% a year for inflation, at a steady 5.0% return, the money runs out in year 12, around age 76. To make it last exactly 30 years, you could start at $9,837 a year.

Success rate1%1000 seeded paths
10th percentile ending$0
Median ending$0
90th percentile ending$0

Other withdrawals from $200,000

Years $200,000 lasts by withdrawal, 5% return, 2% raises
Withdrawal a yearA monthLasts
$8,000$66744 years
$10,000$83330 years
$12,000$1,00023 years
$15,000$1,25017 years
$20,000$1,66712 years

All withdrawals and the odds on one page: how long $200,000 lasts.

How it is worked out

The steady-return figures are the how-long calculator’s own math: the withdrawal comes out at the start of each year, the rest earns the return, and the next withdrawal is 2% larger to keep up with inflation. Real markets do not return the same every year, so the odds come from 1,000 simulated sequences of yearly returns: Trinity-style (7% average, 12% volatility, 3% inflation) and cautious (5%, 15%, 2%). Taxes and fees are not taken out; take them from the withdrawal you enter. More on the method on the methodology page.

Frequently asked questions

How long will $200,000 last if I withdraw $20,000 a year?
12 years at a steady 5% return when the withdrawal rises 2% a year with inflation, or 14 years if it stays at $20,000. The first withdrawal is 10% of the balance.
How long will $200,000 last at $1,667 a month?
$1,667 a month is $20,000 a year, so the same 12 years at a 5% return with 2% yearly raises. Taxes come out of the withdrawal: from a traditional 401(k) or IRA, part of each payment goes to income tax.
How much could $200,000 pay for 30 years instead?
About $9,837 in the first year, raised 2% a year, spends it to zero in exactly 30 years at a steady 5% return; $12,988 lasts 20 years and $8,326 lasts 40.