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Having $1 million or more in your retirement account is an accomplishment that just over 3% of Americans have currently reached, according to the Employee Benefit Research Institute. But even if you accomplish that goal, the rising cost of living has weighed down on many retirees’ budgets, causing some to wonder, “How long will that money last?“

If your goal is to save $1 million for retirement, or you’re there already, here’s how long it might last based on one popular retirement planning strategy.

How long $1 million will last using the 4% rule

The 4% rule has been around for a while, and it’s a baseline recommendation for how much you should take out of your retirement. In short, the 4% rule says you should:

• Withdraw 4% of your savings balance in your first year of retirement
• Adjust withdrawals in the following years to account for inflation

For example, if you have $1 million in your account, you will withdraw $40,000 in the first year. Then, if inflation increases by 2% in the next year, you would increase the amount you pay yourself by 2%, giving you $40,800. You continue making those inflation adjustments each year throughout retirement.

In theory, if you follow the 4% rule, your $1 million in retirement savings could last 30 years or until about age 90 if you begin retirement at 60.

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The 4% rule isn’t perfect

The problem with giving a general calculation of how long your specific retirement funds will last is that no rule will do this perfectly, including the 4% rule. Some drawbacks to the 4% rule include:

• It assumes that inflation is the only factor affecting your annual spending
• It’s based on even distribution of 50% stocks and 50% bonds in your portfolio
• It assumes historical market returns, which aren’t guaranteed
• It doesn’t include taxes or investment fees

With all of its flaws, financial services company Charles Schwab says it’s best to think of the 4% rule as a good starting point rather than a rigid formula.

Indeed, your portfolio performance, retirement length, budget, health, and general expenses will differ from that of other retirees, so using an inflexible formula isn’t a perfect solution.

Talk to a financial advisor

So, if the 4% rule isn’t airtight, what should you do to ensure your $1 million will last as long as possible? One of the best things you can do is to sit down with a financial advisor to map out your specific retirement goals.

Related: Before you begin investing, it’s important to have an emergency fund. Click here for the best high-yield savings accounts.

You can find fee-only (non-commission) fiduciary financial planners on the National Association of Personal Financial Advisors (NAPFA) website. Their fiduciary status means they’ve committed to legal and ethical standards to work in your best interests, rather than their own.

A financial planner can help you decide how much to spend each year in retirement and help you make adjustments based on your taxes, investment income, Social Security payments, and inflation.

This means you’ll probably need to be flexible with your retirement spending. That might mean withdrawing more money in certain years but scaling back in other years, depending on the inflation rate and how your investments are performing.

No matter how much money you have saved up before you retire, spending some time with a financial advisor will help you determine an appropriate range of spending in your retirement years, whether that ends up being three decades or even longer.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short December 2024 $67.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.