Will I Outlive My Savings?
Worrying about whether your money will last through retirement is one of the most common concerns we hear. You’ve worked hard, you’ve saved, and now you’re asking the big question: Will I outlive my savings?
At Peak Financial Freedom Group, we’ve seen this concern play out time and time again in Northern California. Based on our 50+ years of combined experience, we know the answer depends not on luck, but on having a thoughtful, written plan that is designed to help you protect your assets, generates dependable income, and help you reduce unnecessary risks.
The good news? You can put yourself in control. Let’s break it down together.
The Big Levers That Decide How Long Money Lasts
Your Spend Rate
How much money
Market Ups and Downs
Markets rise and fall. What many people don’t realize is that the sequence of returns matters. If you hit a downturn early in retirement while still withdrawing heavily, it can potentially damage your retirement accounts. Building in protection against these swings is key.
Health & Life Surprises
Medical bills, long-term care, or even supporting adult children can disrupt even the best-laid plans. Setting aside a cushion specifically for surprises can help keep your main financial planning strategy intact.
A Simple Way to Check Your Number
Tallying Savings, Income, and Essentials
Start by adding up the amount of money in your savings accounts, then layer in steady income sources like pensions or Social Security. Next, list your essential expenses: housing, food, healthcare, utilities. At Peak Financial Freedom Group, we walk you through this step carefully so you can see the full budgeting picture and understand exactly how long your resources may last.
Wants vs. Needs: A Quick “Must-Have” Budget
Separate your must-haves from your nice-to-haves. Essentials keep you stable; wants add enjoyment. Knowing the difference helps you see what’s flexible if you ever start running out of money. We often help clients organize this in writing so the plan feels less overwhelming and more achievable.
Stress-Testing: What if the Market Dips?
Ask yourself: If my investments drop 20% tomorrow, can I still cover my essentials? Stress-testing your investment management plan helps you see where you might need adjustments. At Peak, we run these scenarios for you, so you can feel more confident that even in tough times, your plan is designed with for financial security in mind.
Turning Savings into Steady Paychecks
Social Security Timing and Coordination
When you claim Social Security benefits can affect how long your savings last. Delaying benefits means bigger checks, but you’ll draw more from savings in the meantime. Finding the right timing for your retirement goals is critical.
Mixing Sources: Investments, Cash, Safety Nets
A smart retirement income plan often blends growth investments, accessible cash, and safety nets like annuities or other guaranteed income options. This balance helps cover both short-term needs and long-term financial goals.
Why Flexibility Beats a Fixed Plan
The best retirement plans aren’t rigid. Life changes, markets shift, risk tolerances change, and health needs evolve. Flexibility helps ensure your income keeps pace with reality.
Common Mistakes Savvy Savers Still Make
Setting a Spend Rate Once and Never Adjusting
Your needs change year to year. A spend rate that worked at retirement age might not work forever. Regular adjustments are essential.
Sitting in Too Much Cash, or Too Little
Some retirees hoard their nest egg and miss out on growth; others take on too much risk. Both extremes can shorten the life of your retirement funds. Balance is the goal.
Ignoring Healthcare Curveballs
Healthcare costs often rise faster than general inflation. Overlooking this can leave you scrambling. A plan that factors in medical expenses, health insurance, Medicare costs can bring peace of mind and can lower the risk of outliving your money.
Northern California Realities to Consider
Local Cost-of-Living Pressures
Sacramento and surrounding areas face higher housing and healthcare costs than many parts of the country. Your wealth management plan must reflect local realities.
Planning for Fires, Outages, and Emergencies
Northern California has unique risks, wildfires, power outages, earthquakes. Building a resilience fund for emergencies keeps these events from derailing your retirement.
What a Peak Retirement Review Includes
We review your income, assets, and goals. Then we build a written plan that answers your biggest question: Will I outlive my savings?
How to Prepare (30-Minute Checklist)
Bring your latest statements, list of monthly expenses, and Social Security information. That’s it. We’ll handle the rest.
Book a no-cost review with Peak Financial Freedom Group today and make sure your plan is built to last.
FAQs
How do I know if I’ll outlive my savings?
Start with a simple plan: list income, essentials, and a safe spend rate. Then check “what-if” scenarios so you won’t outlive my savings.
What spend rate helps me not outlive my savings?
There isn’t one perfect number for everyone. A flexible plan that adjusts to markets helps you avoid risks.
Do I need to change my investments so I don’t outlive my savings?
Maybe. The goal is balance—enough growth for the long run with cash for near-term needs so you won’t outlive my savings.
How often should I review my plan to avoid outliving my savings?
At least once a year, or after big life changes. Regular checkups with a financial professional help ensure you don’t outlive your savings.
Final Thoughts
The fear of outliving your savings is real, but it doesn’t have to define your retirement. With the right plan, you can enjoy your years with confidence, clarity, and peace of mind.
Your retirement deserves nothing less than a comprehensive, written plan. If you’re ready to see if your savings will truly last, Peak Financial Freedom Group is here to help.
Schedule your complimentary retirement review today and take the first step toward financial freedom.
