Only $250,000 in Retirement Savings? Here's How to Make That Money Last
Key Points
You can withdraw $10,000 in your first year of retirement with a $250,000 nest egg, according to the 4% rule.
You will also get money from Social Security and possibly other sources.
Whether $250,000 in retirement savings is enough for you depends on where you live and your spending habits.
- The $23,760 Social Security bonus most retirees completely overlook ›
In most contexts, $250,000 would be a huge amount of money. But when it comes to retirement savings, it can feel like not nearly enough. However, the situation may not be as dire as it seems.
With the right withdrawal strategies and income sources, you may be able to stretch your nest egg further than you were expecting. Here's how to get started.
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How to use the 4% rule with $250,000 in savings
The 4% rule is a well-known retirement rule of thumb that says you can withdraw 4% of your savings in the first year of retirement. Then, you adjust this amount annually thereafter for inflation. It's supposed to help your money last at least 30 years, but mileage can vary.
If we apply this to a $250,000 nest egg, you would have $10,000 to spend in your first year of retirement. It's not much, but it's also likely not all you'll have to rely upon.
Other retirement income sources you can turn to
Most seniors will receive some Social Security benefits, too. The average monthly retirement benefit as of April 2026 is $2,081. That comes out to nearly $25,000 in annual benefits. Married couples may get two retirement checks, or one retirement benefit and a spousal benefit.
Two average retirement benefits would give you almost $50,000 to add to your $10,000 in personal savings. A retirement benefit and a spousal benefit (average $986 as of April 2026) would give you nearly $37,000, giving you an annual income of $47,000 in retirement.
That could be enough for some people to live on, though a lot depends on your location and spending habits. But you may have other income sources, too.
If you take a job or sign up for other government benefits, like Supplemental Security Income (SSI), you could further increase your annual retirement income. You'll also be diversifying your retirement savings, so you're not so dependent on a single income source.
Some seniors also choose to explore more extreme measures, like relocating in retirement to an area with a lower cost of living. There's more to consider than finances with a decision like that. But if you're comfortable leaving your current home behind, this could be a smart way to stretch your dollars further.
There's no single best strategy if you're retiring on $250,000. Figure out which of the above options appeals to you and devise a plan around them.
The $23,760 Social Security bonus most retirees completely overlook
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