Retirement / Safe Withdrawal Rate Calculator — $1.000.000 Portfolio, $40.000/Year
Calculate safe withdrawal rates and see how long your retirement portfolio will last.
Inputs
Total retirement savings
Amount you plan to withdraw each year
Expected annual portfolio return
Expected annual inflation rate
Retirement timeline
Retirement Planning Considerations
- Account for reliable income: Reduce the annual withdrawal amount by any pensions or Social Security benefits to see the draw required from investments.
- Stress-test inflation: Try higher inflation assumptions to make sure your plan stays intact during periods of elevated prices.
- Align with real returns: Use the Real Return Calculator to convert projected balances into today’s dollars and confirm your target lifestyle remains affordable.
Frequently Asked Questions
How much can I safely withdraw in retirement?
The traditional 4% rule suggests withdrawing 4% of your initial portfolio value in the first year, then adjusting for inflation. However, this depends on your portfolio allocation, expected returns, and retirement timeline.
What is a safe withdrawal rate?
A safe withdrawal rate is the percentage of your portfolio you can withdraw annually without running out of money during retirement. The 4% rule is a common guideline, but individual circumstances vary.
How does inflation affect retirement withdrawals?
Inflation reduces purchasing power over time, so you need to increase withdrawals annually to maintain your standard of living. This can significantly impact how long your portfolio lasts.