3 Ways to Stretch Your Retirement Savings for Decades

MrDecoder · 2026-02-23T17:44:25+00:00

New retirees often fear running out of money, regardless of their savings amount. To avoid this, they should adopt strategic withdrawal rates, keep some funds invested for growth, and be prepared for market downturns. By doing so, retirees can maintain their nest egg for decades while enjoying their retirement.

MrDecoder

2026-02-23 17:44:25

Abstract generation in progress

If you’re newly retired and worried about tapping the savings you’ve worked hard to build, you’re not alone. Running out of money tends to be a huge fear among retirees.

And it almost doesn’t matter how much money you have. Ask someone with $500,000 in savings and another person with $3 million, and they’ll probably both admit that they’re worried about their funds running out.

Image source: Getty Images.

The good news is that there are steps you can take to stretch your individual retirement account (IRA) or 401(k) so they last for decades. Here’s what to do so you don’t have to stress about depleting your nest egg.

Be strategic with your withdrawal rate

Even if you have a large retirement account, it’s important to tap your savings strategically. To that end, work with a financial advisor or run calculations to figure out a safe withdrawal rate. That rate should hinge on how your portfolio is invested and how long you expect to need your savings to last.

Many retirees rely on the 4% rule to manage their nest eggs. It says you should withdraw 4% of your savings your first year of retirement and adjust future withdrawals for inflation.

Don’t assume that the 4% rule is right for you, though. You may be better off with a withdrawal strategy that’s more conservative, aggressive, or flexible.

Keep some of your savings invested for growth

Many retirees shift away from riskier assets once they’re ready to start tapping their savings. But if you want to support ongoing withdrawals, your portfolio needs to continue generating growth.

That’s why you don’t want to dump your stocks completely in retirement. You can scale back, but aim to maintain a mix of stocks or ETFs that are growth-oriented. It’s also a good idea to balance those with dividend-paying stocks and ETFs, which can also generate income for your portfolio.

Be prepared to adjust to market downturns

In the course of your retirement, the stock market is likely to take a tumble – and maybe several. It’s important to be prepared to reduce your spending during those periods to avoid having to lock in portfolio losses.

Another strategy that may work is maintaining a large amount of cash – say two years’ worth – and replenishing it as it gets spent. If your portfolio loses value due to a market event but you have enough cash to cover 24 months of bills, there’s a good chance your investments will recover before you run out of cash. That way, you may not have to cut your spending too much.

Stretching your retirement savings doesn’t have to mean denying yourself money you can enjoy. Rather, it’s a matter of establishing a smart withdrawal strategy, investment mix, and approach to spending. The above moves could help your nest egg hold up for decades, so they’re worth incorporating into your financial plan.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.