I'm 65 and set to retire with $500,000 in the bank. How long will that last?

If you’re 65 years old and gearing up to retire, it’s a good time to assess your savings. But what if you only have $500,000 in the bank? While that’s well above the median retirement account balance as of a couple of years ago, it’s quite a bit below the average. And regardless of medians or averages, you’ll need to make sure that money lasts as long as you need it to.

With careful planning, though, it’s possible to make a $500,000 nest egg work. Here’s how.

Set a retirement budget

If you use the classic 4% rule to manage your retirement savings, with a $500,000 balance, you’re looking at about $20,000 per year in withdrawals, adjusting for inflation annually. But that’s probably not your only income source available. Chances are, you’re eligible for Social Security at the very least.

The average retired worker on Social Security today collects about $23,000 annually. Combined with your savings, you may be able to live a decent lifestyle if your expenses are relatively low and your home is already paid off (or close to it).

At the same time, it’s important to budget carefully so you’re able to cover your expenses without overdrawing from your savings and putting yourself at risk of running out. Map out your essential bills and only spend beyond that point on extras once you’ve covered them all.

Prepare for the unexpected

Financial emergencies can arise at any time during retirement. Your roof could end up needing to be replaced, as could your vehicle’s engine.

Health-care expenses can also eat into your savings. Fidelity estimates the average cost of health care for a 65-year-old retiring today to be $165,000 throughout their golden years. But you might have a year when your medical bills increase due to having surgery or getting injured. It may be wise to set aside six to 12 months’ worth of expenses in cash so you can cope with unplanned costs.

Keep investing in an age-appropriate manner

A $500,000 nest egg can continue to grow in retirement if you invest it in a savvy manner. You may be inclined to dump your stocks and shift over to more stable investments, such as bonds. But it’s a good idea to keep some of your savings in stocks so your portfolio is able to gain value even while you’re withdrawing from it.

One common formula for investing in stocks as a retiree is to subtract your age from 110. If you’re 65, that guidance tells you to keep 45% of your portfolio in stocks. That may not work for you if you’re more risk-averse, but you can use it as a starting point.

Supplement your savings with earned income

There’s no rule saying you have to stop working completely in retirement. Taking on a part-time job can be a nice way to supplement your savings. And even if you’re collecting Social Security, once you reach your full retirement age, you can earn any amount of income from a job without having any portion of your monthly benefit withheld.

If you don’t like the idea of committing to a part-time work schedule, look at the gig economy. Driving for a ride-hailing service or pet-sitting are things you can do at your own convenience.

Maximize Social Security

Delaying Social Security past full retirement age boosts your monthly benefit by 8% per year, up until age 70. That could have a big impact on your income if you’re able to wait that long. It would mean dipping more into your savings at first, but the benefit might be worth it in the long run. If you’re unsure about how much to withdraw from savings each year or when to claim Social Security, you may want to consult a financial adviser to help come up with a detailed plan.