How long will $300,000 last at different withdrawal amounts?
I calculate without returns first. That way you can see the difference your monthly withdrawal alone makes.
| Fixed monthly withdrawal | How long $300,000 lasts |
|---|---|
| $750 | 33 years and 4 months |
| $1,000 | 25 years |
| $1,500 | 16 years and 8 months |
| $2,000 | 12 years and 6 months |
| $2,500 | 10 years |
| $3,000 | 8 years and 4 months |
The table shows the capital being used up completely without returns, inflation, taxes and costs. The calculation is simple: $300,000 divided by $2,000 gives 150 months. That is 12 years and 6 months. A fixed withdrawal loses purchasing power as prices rise. That is why you can also set an annual inflation adjustment in the calculator.
What counts for the withdrawal is the gap, not your entire cost of living. If you need $2,500 and already receive a net pension of $1,500, you are $1,000 a month short. Without other effects, $300,000 covers that for 25 years. If your pension only starts later, calculate the years before it separately. The detailed calculator for how long your money lasts also takes a later pension start into account.
When is $300,000 enough to retire?
$300,000 can be enough for a full retirement if your uncovered spending is low or other income covers a large part of your living costs. For needs of $2,500 or $3,000 a month funded entirely from your portfolio, however, the amount is usually too small.
The $300,000 range is particularly interesting because it lies between a pension top-up and full financial independence. A small state or company pension, a paid-off home, low running costs or a few years of part-time work can change the calculation a lot. Without these building blocks, the capital quickly becomes a temporary reserve.
The monthly model value
The initial gross withdrawal looks like this:
| Initial rate | Amount per year | Amount per month |
|---|---|---|
| 3% | $9,000 | $750 |
| 3.5% | $10,500 | $875 |
| 4% | $12,000 | $1,000 |
The monthly amount is a guide for the first year. It is not a permanently safe payout. The historical 4% rule works with a subsequent inflation adjustment and specific US data. It takes neither taxes nor your insurance costs into account.
First calculate your actual gap. In the financial independence calculator you can combine your spending, existing capital, target age and later net pension. If the gap stays above $1,000 permanently, the plan needs additional income, lower spending or more capital.
The model with part-time income
$300,000 can make a gradual exit from work possible. Suppose you need $2,500 a month in total. Part-time work of your own choosing brings in $1,500 net. At first, the portfolio has to top up $1,000. This amount equals 4% of the starting capital in the first year.
The model takes pressure off the portfolio and keeps part of your earned income. At the same time, it carries three risks. The earnings can stop, the part-time work can demand more time than planned, and your later pension may turn out lower because you pay in less. The plan should therefore also include a scenario in which the income disappears for twelve months.
Flexible earnings have a particularly strong effect if prices fall at the start. Instead of selling the same sum after a bad year on the stock market, you can work more for a while or postpone spending. This adjustment is not part of the classic 4% rule, but in personal planning it can be worth more than a decimal place in the return.
The model with a later pension
The starting position is different if you do not receive a pension yet. Say, as an example, you want to stop working at 60 and expect a net pension of $1,700 from 67. Your needs are $2,400.
Until 67, the full $2,400 a month is missing. Seven years cost $201,600 without other effects. After that the gap falls to $700. In this simple calculation, $98,400 of the original $300,000 would remain for the later top-up withdrawal. Relative to that, $700 a month would already be more than 8% a year. This shows why an apparently sufficient total needs two separate phases.
If you only stop at 64, the three-year bridge costs $86,400. After that, $213,600 remains on paper. A gap of $700 then equals 3.93% of the remaining amount. Three years’ difference fundamentally changes whether the plan holds.
Do not treat a gross pension as a net amount when planning your later income. Taxes, health insurance and other contributions can reduce the payout. Include them in your monthly costs.
Housing costs matter more than the round total
A paid-off home can lower your monthly housing costs. It does not eliminate them. Maintenance, property tax, insurance, energy and larger modernizations remain. A new roof for $30,000, spread over 20 years on paper, equals $125 a month before any other work comes on top.
If you rent, you have a clearly visible monthly amount but carry the risk of future increases. If you own, you face irregular costs. Both forms of housing must be fully included in your budget. The house itself cannot be counted both as an untouchable home and as freely available capital for withdrawals.
With $300,000, a forgotten provision of $250 a month can make the difference between a 3% and a 4% withdrawal. So check twelve months of bank statements and add rare costs from several years.
Sequence risk and liquidity
An early fall in prices hits a portfolio in the withdrawal phase twice. Its value falls and at the same time units are sold. After a loss of 20%, $300,000 becomes $240,000. An annual withdrawal of $12,000 then equals 5% instead of 4%.
A separately available amount for predictable spending can reduce sales at an unfavorable moment. How large this portion should be cannot be derived from the size of your assets alone. Someone with a secure pension of $2,000 and a gap of only $500 needs a different buffer from someone without other income.
The retirement withdrawal calculator shows how the withdrawal rate, return and inflation interact. Calculate at least with $750, $875, $1,000 and your actual needs. Compare how long the money lasts, and also how much remaining capital you need at certain points in time.
Taxes depend on where you live
All figures on this page are before taxes. How gains and withdrawals are taxed depends on the country you live in. Plan backwards from the net amount you need: if $1,000 is to arrive in your account, the sale required may be larger. Check the rules where you live, or ask a tax advisor.
The right verdict for $300,000
$300,000 is neither enough across the board nor too little across the board. It can fund a lean lifestyle with additional income, a transition phase of several years or a later pension gap. For high monthly needs that are entirely uncovered, the amount is too tight.
So build your plan in phases. Calculate the time until your pension, the time after it and a year without the planned part-time income separately. Then check in the financial independence calculator how your starting age and income change the picture. You will find the neighboring calculations for $200,000 and $500,000.
Sources and limits
The withdrawal scenarios are model calculations before taxes. William Bengen describes the historical basis of the 4% rule in “Determining Withdrawal Rates Using Historical Data”. Personal planning must take into account your real costs, income, insurance, the taxes where you live and your ability to cope with fluctuations.