💳 Retirement Withdrawal Calculator
Calculate retirement withdrawal strategy
4% rule is common (safe withdrawal rate)
How to Use This Calculator
Enter Retirement Savings
Input your total retirement savings - the amount you have saved for retirement.
Enter Withdrawal Rate and Retirement Years
Enter the withdrawal rate (typically 4% - the 4% rule) and number of years in retirement. The 4% rule is a common guideline for safe withdrawal rates.
Enter Expected Return and Inflation
Enter your expected annual return on investments and inflation rate. These affect how long your savings will last with withdrawals.
Review Withdrawal Strategy
See your initial annual and monthly withdrawal amounts, whether your portfolio will last, remaining balance, and total withdrawn. Use this to plan your retirement withdrawal strategy.
Formula
Initial Annual Withdrawal = Retirement Savings × Withdrawal Rate
Year N Withdrawal = Initial Withdrawal × (1 + Inflation)^(N-1)
Year-End Balance = (Start Balance × (1 + Return)) - Withdrawal
Example Calculation:
If savings $1,000,000, withdrawal rate 4%, return 7%, inflation 3%, 30 years:
• Initial annual withdrawal = $1,000,000 × 4% = $40,000
• Year 1 withdrawal: $40,000
• Year 2 withdrawal: $40,000 × 1.03 = $41,200 (adjusted for inflation)
• Portfolio grows at 7% while withdrawals increase with inflation
About Retirement Withdrawal Calculator
A retirement withdrawal calculator helps you determine how much you can safely withdraw from your retirement savings each year without running out of money. The calculator uses the 4% rule as a guideline - withdrawing 4% of your portfolio in the first year, then adjusting for inflation each year. This calculator shows you your initial withdrawal amount, how your portfolio balance changes over time with withdrawals and returns, and whether your savings will last throughout retirement.
When to Use This Calculator
- Retirement Planning: Plan withdrawal strategy for retirement
- Withdrawal Amount: Determine safe withdrawal amounts
- Portfolio Sustainability: See if savings will last
- Inflation Planning: Account for inflation-adjusted withdrawals
Understanding the 4% Rule
- 4% Rule: Withdraw 4% of portfolio in first year
- Inflation Adjustment: Increase withdrawal by inflation each year
- Success Rate: Historically, 4% rule works for 30-year retirements
- Conservative: Some prefer 3-3.5% for longer retirements
Why Use Our Calculator?
- ✅ Withdrawal Planning: See safe withdrawal amounts
- ✅ Portfolio Analysis: See if savings will last
- ✅ Inflation Adjustment: Account for inflation in withdrawals
- ✅ Retirement Strategy: Plan your withdrawal strategy
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is the 4% rule?
The 4% rule is a guideline for safe withdrawal rates in retirement. It states that you can withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each subsequent year. Historically, this rule has worked for 30-year retirements, meaning your money should last 30 years with a 4% withdrawal rate.
Is the 4% rule still valid?
The 4% rule is a guideline based on historical market returns. While it has worked historically, future returns may differ. Some experts suggest using 3-3.5% for longer retirements (40+ years) or during periods of low expected returns. The rule assumes a diversified portfolio and may need adjustment based on your specific situation.
How does inflation affect withdrawals?
Inflation reduces purchasing power over time, so withdrawal amounts need to increase each year to maintain the same standard of living. The 4% rule accounts for this by adjusting the withdrawal amount for inflation each year. For example, if you withdraw $40,000 in year 1 and inflation is 3%, you'd withdraw $41,200 in year 2.
What if my portfolio runs out of money?
If the calculator shows your portfolio will run out of money, consider: (1) Reducing withdrawal rate (e.g., 3% instead of 4%), (2) Reducing expenses, (3) Working part-time in retirement, (4) Delaying retirement to save more, (5) Having other income sources (Social Security, pensions), (6) Adjusting investment strategy for better returns. The calculator shows when your portfolio will be depleted so you can plan accordingly.