Will My Retirement Savings Last? What to Know Now

The information provided in this article is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any retirement decisions.

Picture this: You’re scrolling through your 401(k) balance, and suddenly that familiar knot forms in your stomach. The numbers look okay, but then the doubt creeps in. “Will my retirement savings last?” It’s a question that many (actually the majority) of us have.

A 2025 Allianz Life Insurance study found that 61% of Americans are more afraid of running out of money than death itself (Allianz Life Future of Retirement Study). That’s a sobering reality–one that you may be facing yourself.

But here’s the good news: answering this question doesn’t require a crystal ball. With the right approach and tools, you can replace that uncertainty with confidence.

Understanding Your Retirement Picture

Before getting into possible recession scenarios and spending plans, let’s talk basics. Everyone’s retirement journey is unique, shaped by personal goals, lifestyle expectations, and starting points.

Perhaps the biggest mistake people make is not knowing their numbers. You can’t plan effectively for the future if you don’t know where you stand today.

Start by gathering your current retirement account balances, estimating your future spending needs, and considering your retirement timeline. This creates the foundation for everything that follows.

Modern planning tools make this process much easier than the spreadsheets of yesterday. You can now see your complete financial picture in one place, with regular updates as markets move and your situation changes.

Preparing for Economic Uncertainty

Let’s face it– the economy doesn’t always cooperate with our retirement plans. Market drops, inflation spikes, and recessions can throw even the best-laid plans off course.

That’s why smart retirement planning includes “stress testing” your savings against different economic scenarios. This isn’t about doom and gloom, it’s about preparation and peace of mind.

Try running a recession simulation on your retirement plan. How would your savings hold up if the market dropped 20% in your first year of retirement? What about if high inflation persisted for several years?

The early years of retirement are particularly important because of something called “sequence of returns risk.” Simply put, market downturns early in retirement can do more damage than those that happen later on. According to a Vanguard research paper, this risk is one of the most significant threats to retirement security (Vanguard, “Sequence-of-returns risk and the current market environment”).

DID YOU KNOW?

The “4% rule” for retirement withdrawals was developed by financial advisor William Bengen in 1994, but research from Morningstar suggests that today’s market conditions might warrant a more conservative initial withdrawal rate for a 30-year retirement with a balanced portfolio (Morningstar report).

Planning for Life’s Major Expenses

Retirement isn’t just about everyday expenses–it’s also about being ready for those big-ticket purchases that can derail your plans if you’re unprepared.

Healthcare tops the list for most retirees. Fidelity’s 2024 Retiree Health Care Cost Estimate shows that a 65-year-old couple retiring today will need approximately $315,000 saved for healthcare expenses alone during retirement (Fidelity’s 2024 Retiree Health Care Cost Estimate).

Other major expenses to anticipate might include:

• Home repairs or modifications as you age
• Replacing vehicles
• Supporting adult children or aging parents
• Travel dreams and bucket list experiences
• Long-term care needs

Building these anticipated costs into your retirement plan gives you a much more realistic picture of your future needs. When you can visualize these expenses ahead of time, they become manageable parts of your plan rather than financial emergencies.

Many retirees find that mapping out potential major expenses and when they might occur helps them make smarter decisions about the timing of these expenditures.

Building a Complete Income Strategy

Creating a sustainable retirement income isn’t just about having enough saved–it’s about orchestrating your various income sources in the most efficient way possible.

Start with Social Security. When to claim these benefits is one of the most important retirement decisions you’ll make. According to the Social Security Administration, waiting until 70 (rather than claiming at 62) can increase your monthly benefit by about 76% (Social Security Administration). For many people, this guaranteed income boost is worth the wait.

Next, consider how you’ll tap your various retirement accounts. The traditional wisdom of drawing from taxable accounts first, then tax-deferred accounts, and finally Roth accounts still holds true for many. But your specific situation might benefit from a more customized approach.

QUICK TIP

Consider setting up a “retirement paycheck” for yourself by directing regular, fixed withdrawals from your retirement accounts to your checking account. This mimics the predictability of a paycheck and can help with budgeting, according to T. Rowe Price research (T. Rowe Price Insights).

Don’t forget about potential part-time work or passive income streams. Even modest earnings in retirement can dramatically reduce the pressure on your investment portfolio. A study from the Center for Retirement Research at Boston College found that working just a few years longer can have the same impact as saving an additional percentage point of your salary over 30 years (Center for Retirement Research).

Bringing It All Together: Your Personalized Retirement Roadmap

The most valuable retirement plans are comprehensive, personalized, and adaptable. They account for your unique situation, risk tolerance, and goals while remaining flexible enough to adjust as life happens.

Technology makes this level of planning more accessible than ever. We like Empower’s retirement planning tools because they bring all these elements together in one place, allowing you to:

• Test different scenarios (including market downturns)
• Plan for major expenses with timeline visualization
• Create a complete spending plan that incorporates Social Security optimization
• Adjust your strategy as your situation changes

Having this kind of integrated view turns the vague worry of “Will my retirement savings last?” into a concrete understanding of your financial future. You move from uncertainty to confidence, from anxiety to action.

Time to Take Control

The question “Will my retirement savings last?” becomes much less daunting when you have the right tools and approach. Rather than worrying about the unknown, you can build a plan that accounts for various scenarios and gives you a clear path forward.

The most important step is the first one: committing to create a comprehensive retirement plan that accounts for economic uncertainty, major expenses, and your complete income picture.

The peace of mind that comes from knowing where you stand–and having a plan to get where you want to go–is truly priceless. And with today’s financial planning technology, you don’t need to be an expert to achieve it.

Take that first step today. Your future self will thank you.

The information provided in this article is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any retirement decisions.

Also read:
Financial Advice for Parents With Adult Children Living at Home
How to Save for a Rainy Day: Try These 5 Smart Saving Strategies

You can find MomsWhoSave on Facebook, Instagram, Pinterest, and Twitter. Join us for updates!

Don’t miss a thing! Subscribe to MomsWhoSave’s newsletter.