Safe withdrawal rates determine how much you can spend from your portfolio each year without running out of money in retirement. The classic "4% rule" is a starting point, but your optimal rate depends on your portfolio size, allocation, retirement length, and other income sources. This calculator shows year-by-year projections at multiple withdrawal rates.
Retirement Portfolio Details
Rest is bonds. 60% stocks is the classic 60/40 portfolio.
Withdrawal Rate Comparison
| Rate | Year 1 Income | Balance Yr 15 | Balance Yr 30 | Portfolio Survives? |
|---|
Year-by-Year at Your Rate
| Year | Start Balance | Withdrawal | End Balance |
|---|
How to Use the Investment Withdrawal Rate Calculator
Finding your safe withdrawal rate is one of the most important decisions in retirement planning. This calculator shows multiple withdrawal scenarios side-by-side and generates a year-by-year projection for your specific situation.
Step 1: Enter Your Portfolio Details
Enter your total investable portfolio value, your desired annual income (how much you want to spend per year before any other income sources), and your expected retirement length. If you retire at 65 and expect to live to 95, that is 30 years. If you retire at 55 (early retirement), plan for 40+ years.
Step 2: Set Asset Allocation and Inflation
Your stock/bond allocation significantly affects portfolio survival. Higher stock allocation historically produces better long-term returns but with more year-to-year volatility. The classic 4% rule was tested on a 50% stock portfolio; modern research slightly favors 60%–80% stocks for the best long-term survival rates. Use 3% inflation as a baseline; adjust upward if you expect higher inflation.
Step 3: Compare Withdrawal Rate Scenarios
The comparison table shows what happens at 3%, 3.5%, 4%, and 5% withdrawal rates — how much income each provides and whether your portfolio survives your full retirement length. Your actual withdrawal rate (desired income / portfolio value) is calculated automatically. If it is above 5%, consider either increasing your savings or reducing spending goals.
The Impact of Other Income Sources
Social Security, pensions, and part-time income reduce the required portfolio withdrawal dramatically. If you need $60,000/year but Social Security provides $24,000, you only need $36,000 from your portfolio — just 3.6% of a $1M portfolio instead of 6%. Optimizing Social Security timing (delaying to 70) is often the highest-impact retirement planning decision available.
Frequently Asked Questions
Is this withdrawal rate calculator free?
Yes, completely free with no signup required. All calculations run in your browser.
What is the 4% rule?
The 4% rule (also called the Bengen Rule) states that you can withdraw 4% of your portfolio in year 1 of retirement, then adjust that amount annually for inflation, and your portfolio should last at least 30 years. It was derived from the Trinity Study, which analyzed US stock and bond returns from 1926–1995. With a balanced 50% stock / 50% bond portfolio, a 4% withdrawal rate succeeded 95%+ of the time over 30 years.
Is the 4% rule still valid?
The 4% rule remains a useful starting point, but many financial planners suggest 3.0%–3.5% for retirements lasting 40+ years, given current lower bond yields compared to the original study period. If you have a shorter retirement (under 25 years) or other income sources like Social Security, a higher withdrawal rate of 4%–5% may be appropriate. The key variable is your portfolio's asset allocation and how it performs relative to inflation.
What portfolio allocation is best for retirement withdrawals?
Research supports a diversified portfolio with 40%–70% equities for long retirement periods. Higher equity exposure produces higher long-term returns but more volatility. A common recommendation is 60% stocks / 40% bonds for the 4% rule scenario. 100% bonds historically have poor long-term survival rates despite lower short-term volatility because returns often fail to outpace inflation and withdrawals.
How does Social Security affect my withdrawal rate?
Social Security significantly reduces the required withdrawal from your investment portfolio. If you need $60,000/year in retirement income and Social Security provides $20,000, you only need $40,000 from your portfolio — a 3.3% withdrawal rate on a $1.2M portfolio instead of 5% withdrawal rate. Delaying Social Security to 70 maximizes this benefit and is often the best 'return' available to retirees.