What is a safe withdrawal rate?

The 4% rule is the most cited guideline. Recent research suggests 3.5-4.5% depending on market conditions, asset allocation, and retirement length.

Does the 4% rule still work?

The 4% rule was developed based on historical US market data. With current lower expected returns, some experts suggest 3-3.5% for longer retirements.

Should I adjust withdrawals for inflation?

Yes. Most retirement planning assumes you increase withdrawals annually by inflation (2-3%). This maintains your purchasing power over time.

Free Retirement Withdrawal Rate Calculator

Calculate how long your retirement savings will last at different withdrawal rates and expected returns.

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Portfolio Value

USD

Annual Withdrawal

USD

Expected Return

Withdrawal Rate

4.00 %

Portfolio Lasts100.0 years

Monthly Income$3,333

Withdrawal Rate vs Portfolio Value

View formula & how it works →

Withdrawal Rate Analysis

Withdrawal Rate = Annual Withdrawal / Portfolio Value

Safe Withdrawal Rates

RateRisk Level 3%Very conservative 4%Traditional safe rate 5%Moderate risk 6%+Higher depletion risk

The famous 4% rule is based on research showing a 4% initial withdrawal (adjusted for inflation) has historically survived 30-year periods.

Example Calculation

$1,000,000 portfolio, $40,000/year withdrawal, 5% return.

01Withdrawal rate = $40,000 / $1,000,000 = 4.00%
02At 5% return and 4% withdrawal, portfolio theoretically lasts indefinitely
03Monthly income = $40,000 / 12 = $3,333

Frequently Asked Questions

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Free Retirement Withdrawal Rate Calculator

Withdrawal Rate Analysis

Safe Withdrawal Rates

Example Calculation

Frequently Asked Questions

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