You’ve been saving for retirement, maybe steadily, maybe sporadically. Either way, the real question is this: How can you make your retirement savings last once you stop working?
There’s no single answer. The outcome depends on how you spend, how you invest, and how life unfolds over the years. Planning for 30+ years in retirement requires more than back-of-the-napkin math. Inflation chips away at purchasing power. Market swings can shake your confidence. And expenses often look very different at 75 than they do at 65.
In this guide, we’ll cover:
✔ Retirement withdrawal strategies that adapt to real-life needs
✔ How to avoid running out of money in retirement
✔ How to calculate retirement expenses
✔ The safe withdrawal rate for retirees and how it works
✔ How to generate passive income in retirement
If you’re still figuring out your target, take a look at how much money you need to retire. Once you’ve got a number that feels right for you, this guide shows you how to stretch it further.
> How much money do you need to retire? A comprehensive guide
What determines how long your retirement savings last
1. Annual spending
What you spend each year in retirement can either protect your savings or deplete them quickly. You might imagine spending less without work-related costs, but lifestyle upgrades tend to follow salary increases.
Avoid surprises and spot early signs of overspending when you budget for retirement. Without visibility, savings disappear faster than expected.
> Best budgeting apps for 2025: Track, save, and invest smarter
2. Market volatility
Even the best plans get tested by uncertainty. Political instability, inflation spikes, or financial crises can hit hard and fast. Diversification cushions the blow, while a balanced portfolio keeps you positioned for recovery. Solid investment strategies for retirement income focus on long-term returns without ignoring risk.
> What is risk diversification, and why is it essential?
3. Retirement length
Retiring at 65 doesn’t mean your money only needs to last 10 or 15 years. In many countries, life expectancy continues to rise. Living into your 90s is no longer rare. Planning for 30+ years in retirement isn’t just safe, it’s smart. Every extra year stretches your nest egg unless you build in that possibility from the start.
4. Healthcare and long-term care costs
Routine medical bills are one thing. Long-term health issues, in-home care, or extended rehabilitation are another. These expenses arrive later in retirement, when your savings have already taken a hit. Overlooking these costs increases the risk of running out of money in retirement, even if the early years look secure.
5. Inflation
Today’s expenses won’t stay the same in 10 or 20 years. That €1 500 rent or €100 grocery bill could double depending on the rate of inflation. If you base your setup on current prices, you risk underestimating your future costs.
Knowing how inflation affects retirement savings allows you to adjust your targets before rising costs put pressure on your lifestyle. Over time, inflation chips away at your purchasing power, so a clear, inflation-aware plan reveals gaps before they grow.
> Learn how long-term investments can support your retirement timeline
How to calculate retirement expenses and the lifespan of your savings
You can’t organize your retirement around guesswork. Knowing how to calculate retirement expenses enables you to see exactly what your savings need to support.
Once you understand the size of the challenge, you can build methods that match it.
Step 1: Build your retirement expense profile
This isn’t your current budget with a few tweaks. Retirement brings different priorities. Start by listing fixed monthly costs like mortgage or rent, food, utilities, insurance, and medical expenses. Then estimate discretionary spending, including travel, hobbies, or gifts.
Don’t forget occasional large costs like car replacements or home maintenance. Your expense profile should reflect a full calendar year, not just an average month.
Step 2: Factor in inflation
Once you’ve built your expense profile, you need to project what those costs might look like years from now. Inflation doesn’t just increase prices, it reshapes your entire approach. Learn how inflation affects retirement savings to avoid underestimating future expenses.
To model this, apply an annual inflation rate to each category in your budget. If healthcare costs €3 000 next year and you use a 2.5% inflation rate, increase that amount each year you expect to be retired. Do the same for housing, food, insurance, transportation, and personal spending.
This approach gives you a dynamic, forward-looking view of retirement costs instead of a flat estimate that loses relevance over time. It turns your plan into a living framework, not a frozen guess.
Step 3: Estimate your annual withdrawal needs
Once you’ve adjusted your expenses for inflation, total them to get your projected yearly spending.
This figure becomes the foundation for the rest of your plan. It tells you how much pressure you’ll place on your savings every year and lets you begin evaluating whether your current balance is enough, or whether you’ll need to save more, work longer, or rethink your approach to retirement withdrawal strategies.
Step 4: Run longevity calculations
Now apply your numbers to a realistic scenario. Longer retirements, higher inflation, or poor market returns may require a more conservative approach.
Online tools project how long your savings will last based on different variables. These models won’t do the planning for you, but they show how small changes like withdrawing less or earning more, can extend the life of your savings.
Step 5: Repeat the process regularly
One calculation is never enough. To avoid running out of money in retirement, revisit your numbers regularly and adjust as life shifts.
A thoughtful, data-driven approach is the only way to answer the questions that matters most: how long will my retirement savings last, and what can I do to stay financially secure for the long haul?
Retirement withdrawal strategies to stretch your savings
Saving for retirement is only half the equation. After you leave the workforce, the real challenge begins, deciding how to draw down those savings without draining them too fast. Smart retirement withdrawal strategies protect your portfolio from both market volatility and lifestyle inflation.
> A solid grasp of risk and return helps you avoid panic and stay the course
Start with the safe withdrawal rate for retirees
The 4% rule is a common benchmark. If you withdraw 4% of your retirement savings in the first year and adjust that amount each year for inflation, your money may last 30 years. For example, if you have €500 000 saved, your first year’s withdrawal would be €20 000.
This works best if you have a diversified portfolio, consistent returns, and moderate spending habits. It’s simple, but not foolproof. If markets underperform or inflation runs high, a 4% rate may be too aggressive. That’s why many retirees choose to adjust based on actual conditions.
Try flexible spending models
Instead of sticking to a fixed percentage, dynamic strategies shift based on market performance. In strong years, you withdraw a little more. In weaker years, you cut back. This smooths out the pressure on your portfolio and increases the odds of staying solvent longer.
Consider a bucket approach
Separate your savings into segments based on when you’ll need the money. Keep cash or low-risk assets in a short-term bucket for the next 1–3 years. Medium-term needs go into bonds or conservative investments. Long-term growth sits in equities or diversified portfolios. This method gives you structure while reducing panic when markets wobble.
> The ultimate guide to cash investments
Sequence withdrawals
How you pull money out matters. Some approaches focus on withdrawing from non-tax-advantaged accounts first and deferring taxed or investment-linked pensions until later.
This lowers your lifetime tax burden and gives your income more room to grow. Tax-efficient withdrawals in retirement let you hold on to more of what you’ve earned, year-on-year.
The structure you choose should balance tax efficiency, cash flow, and the need to stay invested. The right withdrawal strategy equips you with the knowledge on how to make retirement savings last while letting you shape your lifestyle on your terms.
> Why is asset allocation key to balancing income and long-term growth?
How to generate passive income in retirement
When you no longer work for your income, your income should start working for you. That’s the idea behind passive income in retirement. It doesn’t replace your savings, but it adds flexibility and gives you more control where it matters most.
So what does passive income in retirement actually look like? These are some of the most practical and low-maintenance tactics to keep money coming in.
- Focus on investments that pay monthly to keep your income predictable
- Set up multiple streams of income so you’re not dependent on a single source
- Automate investing where you can to reduce effort and stay consistent
- Put extra money to work instead of letting it sit idle
- Choose low-risk investments that aim for stability, not speculation
- Earn monthly interest through stable, income-focused assets
> Discover 15 passive income ideas to build your wealth in 2025
Find the best investment options for retirees based on goals
Planning how to spend your retirement savings is just the beginning. The next step is building a framework that supports your income over the long haul. Here are a few investment options on Mintos that can help turn savings into sustainable income.
- Loans – Earn regular interest payments, diversify across sectors and regions, and choose between automated or hands-on investing.
- Bonds – Invest from €50, earn fixed returns, and diversify your investments. A great option for those looking for steady, passive income.
- Passive real estate – Generate monthly rental income from property-backed investments with a lower entry point than direct ownership.
- Smart Cash – Access a money market fund with the highest rating that offers higher interest than traditional savings with same-day withdrawals.
- ETFs – Invest in ETFs globally with a single portfolio, enjoy diversification, and zero commission fees, starting from just €50.
Disclaimer
This is a marketing communication and in no way should be viewed as investment research, advice, or a recommendation to invest. The value of your investment can go up as well as down, and you may lose part or all of your invested capital. Past performance of financial instruments does not guarantee future returns. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives.
Any scenarios or examples provided are for illustrative purposes only. They do not guarantee specific outcomes or returns and should not be relied upon when making investment decisions. Actual results may vary based on market conditions, issuer performance, and other factors.
