How to use the retirement withdrawal calculator
- 1 Enter your retirement savings.
- 2 Enter your first-year withdrawal.
- 3 Enter your expected return and inflation.
- 4 Enter how many years it needs to last and read the result.
Worked example
$1,000,000 of savings, $50,000 taken in the first year, a 6% return and 3% inflation. The withdrawal rate is 5.00%, and the money lasts about 29 years, 0.9 years short of a 30-year goal. To last 30 years, the first-year withdrawal should be $49,017 ($4,085 a month). The 4% rule would suggest $40,000.
Making savings last
- Start near 4% and adjust each year.
- Cut back after bad market years.
- Delay Social Security for a larger benefit.
- Keep one or two years of spending in cash.
Add benefits with the Social Security Calculator, check required amounts with the RMD Calculator, and compare with the Annuity Calculator.
Features
Years it lasts
With withdrawals rising each year with inflation.
Safe amount
The largest first-year withdrawal that lasts your target years.
4% rule check
Compares your withdrawal rate with the classic rule of thumb.
When to use it
Planning retirement income
Add Social Security from the Social Security Calculator.
Required withdrawals
Check the minimum you must take with the RMD Calculator.
Guaranteed income
Compare with buying income using the Annuity Calculator.
Building savings
See how much you need with the Retirement Calculator.
Related Savings and Investing tasks
Frequently asked questions
How long will my retirement savings last?
It depends on how much you withdraw, your returns and inflation. $1,000,000 with $50,000 taken in the first year, rising 3% a year, lasts about 29 years at a 6% return.
What is the 4% rule?
A guideline from studies of US market history: withdrawing 4% of your savings in the first year, then raising it with inflation, has lasted at least 30 years in almost all past periods for a balanced portfolio.
Is the 4% rule still safe?
Many planners use 3.5% to 4.5% depending on market conditions, flexibility and how long retirement might last. Being willing to cut spending in bad years makes a higher rate safer.
What return should I use in retirement?
A cautious figure for a balanced portfolio, for example 4% to 6% before inflation. Lower returns early in retirement do the most damage, which is called sequence-of-returns risk.
Why do withdrawals rise with inflation?
To keep the same buying power. At 3% inflation, $50,000 today becomes about $118,000 in 30 years.
Does this include taxes?
No. Withdrawals from a traditional 401(k) or IRA are taxed as income, so withdraw enough to cover tax. Roth withdrawals are usually tax-free.
How does Social Security change the answer?
It reduces how much you need from savings. Subtract your expected benefit from your spending and use the difference as the withdrawal.
What if my money runs out too early?
Spend less, work longer, delay Social Security for a bigger benefit, or buy an annuity for part of your income. Each one helps your savings last longer.
Should I withdraw a fixed amount or a percentage?
A fixed inflation-adjusted amount gives steady income; a fixed percentage of the balance never runs out but income goes up and down. Many retirees combine the two.
What about required minimum distributions?
From age 73 (75 for people born in 1960 or later), you must take at least a minimum each year from traditional accounts, even if you do not need it.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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