{"id":18878,"date":"2025-12-08T01:15:00","date_gmt":"2025-12-08T07:15:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=18878"},"modified":"2026-02-03T17:29:33","modified_gmt":"2026-02-03T23:29:33","slug":"how-to-make-your-savings-last","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-make-your-savings-last\/","title":{"rendered":"How to avoid running out of money in retirement"},"content":{"rendered":"\n

Saving for retirement is essential to make the most of your third act, but what happens if you run out of money in retirement despite your best efforts? The trick is knowing how much you need for a comfortable retirement so you can start preparing and ensure your savings last.<\/p>\n\n\n\n

Read on to learn how to avoid running out of money in retirement.<\/p>\n\n\n\n

<\/a>The number one retirement concern: running out of money<\/strong><\/h2>\n\n\n\n

Running out of money in retirement is a serious fear many Americans face when planning for retirement<\/a>. According to Radhika Duggal, chief marketing officer for an online shopping site and adjunct professor of consumer behavior at a university in New York, this concern comes down to the numbers. Duggal points to a study conducted by The Motley Fool<\/a>, which indicates that while 62% of younger Americans (ages 18 to 29) have money saved for retirement, only 30% percent feel their savings plan is on track to enable their future plans. In addition, of those surveyed, 25% have no retirement savings at all. \u201cUnfortunately, for many, folks simply don\u2019t have enough saved,\u201d Duggal says.<\/p>\n\n\n\n

<\/a>The difference between \u2018running low\u2019 and \u2018running out’<\/strong><\/h2>\n\n\n\n

\u201cRunning low\u201d and \u201crunning out\u201d of retirement savings represent distinct stages of financial insecurity for retirees. Running low implies a dwindling balance that warrants careful budgeting and potential lifestyle adjustments to make funds last. In contrast, running out signifies a depletion of funds and the potential inability to cover essential expenses.<\/p>\n\n\n\n

Proper planning, investment diversification, and regular monitoring can help mitigate both scenarios. The former allows adjustments to be made, while the latter might require drastic changes. Adequate retirement savings, well-managed withdrawals, and potential income sources like Social Security are critical to avoiding running out of money and maintaining a comfortable retirement lifestyle.<\/p>\n\n\n\n

\"Three<\/figure>\n\n\n\n

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\u201cRunning low is having a little money left in your savings, but only enough to get you to a certain point or time frame,\u201d Duggal says. \u201cRunning out means entirely maxing out your savings to the point that you need to refill your source of income as soon as possible.\u201d<\/p>\n\n\n\n

<\/a>Calculate your retirement costs<\/strong><\/h2>\n\n\n\n

To help guide your retirement savings efforts, do the math<\/a>: How much money will you need to have a secure retirement and to meet your personal goals, such as traveling or renovating your home?<\/p>\n\n\n\n

\u201cAccording to experts, there are four phases of retirement, and it\u2019s important to calculate costs and budget appropriately for each phase individually,\u201d Duggal says. She recommends asking yourself the following questions based on what stage of life you are in.<\/p>\n\n\n\n