Determine how much you can safely withdraw from your retirement portfolio annually without running out of money.
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The safe withdrawal rate (SWR) determines how much you can withdraw from your portfolio each year without depleting your savings. Our calculator analyzes multiple withdrawal strategies—conservative, standard, and variable—to help you plan retirement income that lasts.
Safe Withdrawal Rate (SWR) is the percentage of your portfolio you can withdraw annually with high confidence your money will last throughout retirement. The famous '4% rule' from the Trinity Study found that 4% withdrawals historically sustained portfolios for 30+ years, though modern research suggests flexibility improves outcomes.
Safe Withdrawal Rate Formula
SWR = (Annual Withdrawal ÷ Portfolio Value) × 100Ensure your savings last throughout retirement without running out.
Know exactly how much you can spend each year in retirement.
Balance spending needs against market volatility and longevity risk.
Maximum safety for long retirements or uncertain markets.
Classic 4% rule—balanced approach backed by historical data.
Adjusts based on retirement length—higher rates for shorter periods.
Reduce withdrawals in down years, increase in good years.
The 4% rule remains a useful guideline but isn't guaranteed. It's based on historical US market returns and 30-year retirements. For longer retirements, consider 3-3.5%. For shorter periods, 4.5-5% may be appropriate.
Poor returns in early retirement years significantly impact portfolio longevity. A market crash right after retiring is far more damaging than one later. Consider lower initial withdrawals or a cash buffer to mitigate this risk.
Yes—the original 4% rule assumes inflation-adjusted withdrawals. Start at 4% of your initial portfolio, then increase that dollar amount by inflation each year. This maintains purchasing power but increases portfolio risk.
Subtract guaranteed income (Social Security, pensions, annuities) from your expenses. Only apply SWR to the remaining need. For example: $50,000 expenses minus $20,000 Social Security = $30,000 needed from portfolio.