You may get more money from Social Security than expected.

Your living costs might drop in retirement.

Managing your savings wisely could help it last as long as you need it to.

A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Many Baby Boomers heading into retirement are preparing for the possibility that their savings won’t stretch far enough. After decades of hearing warnings about market volatility, rising healthcare costs, and longer life expectancies, it’s no surprise that the fear of running out of money has become the primary concern for the Boomer generation. But what if the outlook isn’t quite as grim as many expect?

Retirement accounts could last much longer than anticipated due to a combination of overlooked income sources, lifestyle changes, and smarter withdrawal strategies. For some Boomers, this news may come as a welcome surprise, especially after years of dreading a post-retirement life of extremely cautious spending. Here are three key reasons their nest egg might last longer than they think.

This post was updated on January 21, 2026 to provide an overview on Boomer retirement fears, as well as to add a section on market growth.

The average Social Security recipient today collects around $1,900 per month. But if you were an above-average earner, you may be in line for a larger monthly Social Security check.

Also, your filing age helps determine what Social Security benefit you receive. If you delay your filing beyond full retirement age, your monthly benefit gets boosted for life.

You should also know that Social Security benefits are eligible for a yearly cost-of-living adjustment. This is designed to help ensure that benefits are able to keep pace with inflation.

So all told, you may be surprised — in a good way — at how much retirement income you get out of those benefits. And if it’s more than you were banking on, it means you may not have to take as much money out of your savings as you would’ve thought.

A lot of the bills you faced during your working years might stick around in retirement. But you might also have the option to live more frugally.

Once you’re retired, you don’t have to pay to commute. But that could also mean that you no longer need a car if you live in a walkable area or have plenty of public transportation options that are cheaper. That could result in huge savings when you account for not having a car payment or auto insurance to worry about.

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Also, your housing costs might drop in retirement. A lot of people manage to pay off their mortgages ahead of retirement. And if you no longer need access to a job, you may have the option to move to a new city with lower living costs on a whole.

Plus, once you stop working, you’re apt to have more time to do things like cook and maintain your home. These are services you may have been forced to pay for when your job kept you very busy.

Another reason your retirement account might hold up better than expected is due to proper management. For years, financial experts recommended the 4% rule for retirement plan withdrawals. Some analysts now recommend slightly lower rates (3–3.5%) for a more conservative cushion, and savvy retirees are highly aware of this.

If you’re only tapping your savings to the tune of 2.5% or 3% each year, then there’s a good chance your nest egg is going to have plenty of staying power (assuming a diversified portfolio and average market conditions). And even a 3.5% withdrawal rate could stretch your savings nicely.

If you’re not sure how much to withdraw from your nest egg each year, consult a financial advisor for guidance. They can take your expenses, other income sources, and life expectancy into account to help you come up with a withdrawal rate that helps your retirement account last as long as you need it to.

One of the most common misconceptions about retirement is that your investment growth effectively ends the day you leave your job. In reality, retirement portfolios often remain invested for decades, and those years can still deliver significant market gains. Even modest average returns can dramatically stretch the life of savings when withdrawals are reasonable. For Baby Boomers retiring in their 60s, their money may need to last 25–30 years or more; this means a portion of their savings will continually be working behind the scenes.

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

And no, it’s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It’s much more straightforward (and powerful) than any of that. Frankly, it’s shocking more people don’t adopt the habit given how easy it is.