How Much Could You Spend Per Month If You Retire With $390,000 In Savings?

Whether because of unfortunate circumstances or because they have not prioritized saving for retirement, many Americans are not financially ready to retire. In fact, close to half of all people who retire at age 62 will likely run out of money during retirement. As it stands, Americans estimate they require $1.26 million to retire comfortably, according to Northwestern Mutual. However, even significantly smaller savings can still come in handy when you stop working.

For example, if you have $390,000 saved and you retire at the age of 63, MoneyWise estimates you could safely draw down $15,600 a year, which works out to $1,300 a month. This amount is based on a 30-year retirement and the 4% retirement savings rule, which helps calculate a safe amount to withdraw without depleting savings too quickly. Even if you have more or less than $390,000 in retirement savings, you can still use the rule to find the optimal withdrawal amount by taking out 4% your savings in the first year of retirement, then adjusting that figure for inflation each subsequent year.

For the average individual, it can be hard to know how much is needed to retire. While $390,000 may sound like a lot of money, in the grand scheme of things, the sum may fall short of your retirement needs. One way to find out how much you will need for retirement is to use the Rule of 25X, which requires one simple calculation — multiplying your expected annual expenses by 25 — to arrive at the magic number. But in this example, $390,000, or $15,600 a year, may unfortunately not be enough for a comfortable retirement unless you're willing to make significant lifestyle cuts. However, all hope may not be lost, as there are a few places worth checking for some extra income.

The first retirement income source to consider is Social Security. According to the Social Security Administration (SSA), in November 2025, the average monthly benefits check totaled $2,009. This amount translates to a yearly income of $24,108. That figure will rise to keep up with inflation, as the Social Security Administration announces its COLA increases. It could also be worth checking if you have a forgotten pension, which can provide guaranteed income when you're retired, or checking if you have an annuity plan with an insurance company. Finally, if you found extra income but still can't make it work, it could be worth relocating to a region with a lower cost of living to make your savings stretch just a bit further.