By Farm Bureau Financial Services on August 5, 2025

How Long Do Retirement Savings Typically Last?

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You depend on your retirement to be there when you need it. Yet studies have found 51 percent of Americans worry they will run out of money during retirement and 70 percent of people who are retired wish they had started saving sooner.

When you’re figuring out when to retire and estimating how much money you’ll need for retirement, these six important factors will influence your decision.

Your Retirement Age

With every additional year you work, your retirement savings can grow, giving you more money for the future. But working longer postpones your retirement dreams of travel, spending time with family, volunteering or taking part in other activities. If you work in a physically demanding job or if you have health problems, you might want to retire earlier. If you have a job you enjoy and are in good health, you may want to work longer.

Your Life Expectancy

Of course, there’s no way to know exactly how long you’re going to live, but consider your family history, lifestyle and overall health when you’re trying to figure out how long your savings will last. If your parents lived into their 90s and you’re in good health, you might want to plan on a longer retirement.

Your Social Security or Pension Benefits

You can start taking money out of Social Security as early as age 62 or up to age 70. The longer you wait, the greater
your monthly payment. Taking Social Security sooner might be best if your job is impacting your health. You might prefer to wait if you don’t mind working longer or if you have other sources of income. If your employer offers a pension, figure out how much it will pay based on your retirement age and whether it will increase over time.

Your Retirement Savings

How long will your 401(k) or simplified employee pension (SEP) savings last? Online calculators can help you estimate how much money you’ll need to retire. You can use those estimates to see if you’re on track. If not, you can decide if it makes sense to work longer and save more or whether to trim your retirement spending.

Your Expenses in Retirement

The general rule is to expect to spend 80 percent of your preretirement income after you retire. But you can come up with a more personalized estimate by looking at your current spending habits. Will you eat out in restaurants or cook at home? Travel or garden? Volunteer or golf? Expenses like these can make a big difference in your budget. Be sure to estimate healthcare expenses if you want to retire before age 65, when you qualify for Medicare. If your employer pays most of your health insurance premiums, you might be facing a big expense without their coverage.

Your Partner’s Plans

Are your plans in sync with your partner’s? Do you both want to retire at the same time, or does it make sense for one of you to work longer? If you combine your incomes, how much has your partner saved, and what’s their estimated Social Security payment? Take time to talk about your finances and goals so there aren’t any surprises.

Get Professional Retirement Advice

There are lots of moving parts to consider when you’re trying to figure out how long your retirement savings will last. Farm Bureau can review your finances and help you make decisions that move you toward your retirement goals. Reach out to your local Farm Bureau Financial Services agent today for a no-cost consultation.