A 57-year-old professional has voiced a common but seldom-discussed fear about retirement, confessing they are not scared of dying but are terrified of living too long and running out of money.
The Silent Anxiety of Outliving Your Savings
In a letter to leading money educator Vanessa Stoykov, the individual, who is divorced and close to owning their apartment outright, outlined their concerns. Despite being in decent health and having saved approximately $480,000, the prospect of funding a retirement that could last 25 to 30 years feels overwhelming.
The writer, who wishes to stop full-time work around age 65, explained that their worry isn't for the immediate future but for later life. Having no children to rely on amplifies the fear of financial depletion. "I don't want anything fancy," they wrote. "I just want to be able to live on my own terms and not be constantly stressed."
From $480,000 to $800,000: The Power of Eight Years
Vanessa Stoykov's response was reassuring: this anxiety is far more normal than people admit. She emphasised that the eight years between 57 and 65 are a critical period for growth and adjustment.
Stoykov outlined a realistic pathway for the existing savings to grow. Assuming a modest annual return of 4% to 5%, the initial $480,000 could grow to roughly $650,000 - $700,000 in eight years without further contribution.
However, by continuing to save between $10,000 and $15,000 annually during that period—adding $80,000 to $120,000—and investing those new contributions, the total pot could realistically reach between $700,000 and $900,000 by age 65. A figure around $800,000 is achievable not through luck, but through consistency and time.
Making the Numbers Work in Real Life
The next crucial step is understanding what that sum means for annual income. Stoykov provided clear modelling:
- With around $800,000 at 65, drawing $40,000 a year could support someone for about 20 years even with zero growth, taking them to 85.
- In reality, savings are typically still invested conservatively in retirement, generating some growth. This means, with flexibility, funds can often stretch into a person's late 80s or early 90s.
- A higher annual draw of $50,000 might last 16-18 years without growth, extending closer to 20 years with conservative returns.
Stoykov stressed that modern retirement is a shifting phase, not a single event, where part-time work, variable spending, and ongoing adjustments are common.
The core issue, she notes, is not age itself but not knowing if the numbers are workable. She strongly recommends seeking professional financial advice to model different scenarios, incorporate all income streams, and turn a long life from a source of fear into something that can be planned for with clarity.
"You don't need certainty," Stoykov concluded. "You need clarity. And clarity turns a long life from something frightening into something you can plan around."
