Safe Withdrawal Rate Calculator
Determine how much you can safely withdraw from your retirement portfolio each year. Enter your portfolio value, withdrawal rate, expected returns, inflation rate, and retirement duration to see if your savings will last.
Safe Withdrawal Rate Calculator
FAQ
What is a safe withdrawal rate?
A safe withdrawal rate is the percentage of your portfolio you can withdraw annually in retirement without running out of money. The most commonly cited rate is 4%, derived from historical analysis of stock and bond returns.
How does inflation affect my withdrawals?
Inflation erodes purchasing power over time, meaning you will need to withdraw more each year to maintain the same standard of living. This calculator adjusts your withdrawal amount for inflation each year to reflect real-world spending needs.
What happens if my portfolio runs out?
If the calculator shows your portfolio may run out, consider reducing your withdrawal rate, working part-time in early retirement, reducing expenses, or delaying retirement to allow your savings to grow further.