Turning $480,000 into retirement security: time and steady saving can reach $800,000 by 65

An Australian reader, 57, who plans to retire around age 65, asked financial educator Vanessa Stoykov how to avoid outliving their money. Stoykov says the fear of living too long is common, and eight years to save, adjust and plan is a realistic window. With about $480,000 saved, the path to a larger, more sustainable nest egg is often built on time, steady contributions and prudent investing rather than dramatic risk-taking.

Over the next eight years, three broad dynamics typically unfold. First, continued saving of roughly $10,000 to $15,000 a year adds about $80,000 to $120,000. Second, the existing balance continues to grow; at a modest 4% to 5% annual return, the $480,000 could rise to roughly $650,000 to $700,000 even if no additional money is added. Third, the new money you contribute each year isn’t left idle; it compounds as part of a diversified, often more conservative, investment allocation. When you blend steady contributions with modest growth, it’s reasonable to picture a total somewhere between $700,000 and $900,000 by age 65.

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If you stop working at 65 with around $800,000, the next question is how much you want to draw each year. Living on about $40,000 annually could sustain you for roughly 20 years even if your money didn’t grow at all, taking you to about age 85. In reality, however, savings are usually invested for growth even in retirement, typically at a more conservative posture, so the balance generally continues to work in the background. With modest ongoing growth and some flexibility in spending, many people stretch their savings into their late 80s or early 90s. If you draw closer to $50,000 a year, the same amount typically lasts about 16 to 18 years without growth, and closer to 20 years when you factor in conservative returns and natural changes in spending, extending into the mid- to late-80s.

This calculus explains why retirement today isn’t a single fixed event. It’s a phase that shifts as life changes. Many people work part-time for a few years after 65, spend more earlier and adjust later as circumstances evolve. The fear of living too long is often less about age than about whether the numbers feel workable—and that’s where planning can make a real difference.

A good financial adviser can be a genuine game-changer, the column notes. An adviser helps model different scenarios: how much to save over the next eight years, what stopping work at different ages would look like, and what kind of lifestyle is actually realistic. They can also show how to incorporate sources like a pension or other income streams so you’re not relying on savings alone. If you want help finding someone suitable, you can use the columnist’s free Find an Adviser service here. You don’t need certainty; you need clarity. And clarity turns a long life from something frightening into something you can plan around.