Retirement Withdrawal Calculator
Calculate sustainable retirement withdrawals and see how long your savings will last. Compare withdrawal rates, factor in Social Security and pensions, and plan your retirement income strategy.
Your Portfolio
Annual Expenses
Guaranteed Income
Your Withdrawal Rate
$30,000/year from portfolio
Income Sources
| Source | Annual | Monthly | % of Expenses |
|---|---|---|---|
| Social Security | $20,000 | $1,667 | 40% |
| Portfolio Withdrawal | $30,000 | $2,500 | 60% |
| Total | $50,000 | $4,167 | 100% |
Withdrawal Rate Comparison
| Rate | Annual | Monthly | Lasts |
|---|---|---|---|
| 3% | $30,000 | $2,500 | 50+ years |
| 3.5% | $35,000 | $2,917 | 50+ years |
| 4% | $40,000 | $3,333 | 43 years |
| 4.5% | $45,000 | $3,750 | 35 years |
| 5% | $50,000 | $4,167 | 30 years |
| 6% | $60,000 | $5,000 | 23 years |
Portfolio Projection
| Year | Start Balance | Withdrawal | End Balance |
|---|---|---|---|
| Year 1 | $1,000,000 | $30,000 | $1,028,200 |
| Year 6 | $1,141,584 | $37,964 | $1,169,838 |
| Year 11 | $1,280,702 | $47,196 | $1,307,516 |
| Year 16 | $1,408,498 | $57,898 | $1,431,636 |
| Year 21 | $1,511,847 | $70,306 | $1,528,034 |
| Year 26 | $1,571,701 | $84,689 | $1,576,233 |
| Year 30 | $1,570,332 | $97,828 | $1,560,854 |
Portfolio Needed by Expense Level
| Annual Expenses | Need from Portfolio | 4% Rule | 3% Rule |
|---|---|---|---|
| $30,000 | $10,000 | $250,000 | $333,333 |
| $40,000 | $20,000 | $500,000 | $666,667 |
| $50,000 | $30,000 | $750,000 | $1,000,000 |
| $60,000 | $40,000 | $1,000,000 | $1,333,333 |
| $80,000 | $60,000 | $1,500,000 | $2,000,000 |
| $100,000 | $80,000 | $2,000,000 | $2,666,667 |
Withdrawal Strategy Tips
The 4% Rule
Withdraw 4% of your portfolio in year 1, then adjust for inflation each year. Historically has a 95%+ success rate over 30 years. More conservative: use 3-3.5%.
Sequence of Returns Risk
Poor returns early in retirement hurt more than later. Consider keeping 2-3 years of expenses in cash/bonds to avoid selling stocks during downturns.
Flexible Spending
Reduce withdrawals 10-20% during market downturns. This significantly improves portfolio longevity. Have a "floor" of essential expenses and "ceiling" of discretionary.
Frequently Asked Questions
What is the 4% Rule?
The 4% rule is a retirement withdrawal guideline:
- Withdraw 4% of your portfolio in year 1
- Adjust that dollar amount for inflation each year
- Historically 95%+ success rate over 30 years
Example: $1M portfolio → $40,000 year 1 → $41,200 year 2 (with 3% inflation)
Withdrawal Rate Guidelines
| Rate | Risk Level | Best For |
|---|---|---|
| 3% | Very Conservative | Early retirees, long horizons |
| 3.5% | Conservative | 30+ year retirement |
| 4% | Moderate | Traditional 30-year retirement |
| 4.5% | Slightly Aggressive | Flexible spending ability |
| 5%+ | Aggressive | Shorter retirement, other income |
Sequence of Returns Risk
Poor returns early in retirement hurt more than later because you're withdrawing from a declining balance. Protect against this by:
- Keeping 2-3 years expenses in cash/bonds
- Reducing withdrawals during market downturns
- Having flexible "nice to have" expenses you can cut
Withdrawal Strategies
- Fixed percentage: Same % each year (simple but volatile)
- Fixed dollar + inflation: The 4% rule approach
- Guardrails: Adjust up/down based on portfolio performance
- Bucket strategy: Short/medium/long-term buckets