Understanding How Long Your Money Will Last

Whether you're planning for retirement, a career break, or managing a windfall, understanding how long your savings will last is crucial for financial planning. This calculator helps you estimate the longevity of your savings based on your spending patterns and investment returns.

How the Money Last Calculator Works

This calculator considers your current savings, expected investment returns, and planned regular withdrawals to determine how long your money will last. It accounts for both the depletion of principal through withdrawals and the potential growth of your remaining balance through investment returns.

Key Factors Affecting Your Money's Longevity

Initial Balance: Your current savings or investment amount
Regular Withdrawals: How much you plan to spend regularly
Withdrawal Frequency: How often you withdraw money
Expected Return Rate: Anticipated investment returns
Inflation: The decreasing purchasing power of money over time

Using This Calculator

Enter your current savings balance, planned regular withdrawals, and expected investment return rate. The calculator will show you how long your money is likely to last. This can help you make informed decisions about your spending rate and investment strategy to ensure your money lasts as long as you need it to.

Tips for Making Your Money Last Longer

Consider reducing regular withdrawals if possible
Explore investment options that may provide better returns
Account for inflation in your planning
Maintain an emergency fund to avoid unexpected large withdrawals
Review and adjust your withdrawal strategy periodically

Example Scenario

Consider this retirement scenario:

Starting savings: £500,000
Monthly withdrawal: £2,000
Expected annual return: 5%
Result: Your savings would last approximately 30 years

Important Considerations

Remember that this calculator provides estimates based on constant withdrawal rates and steady investment returns. In reality, market returns can vary significantly, and your spending needs may change over time. It's important to regularly review and adjust your financial plan as circumstances change.