Retirement Withdrawal Calculator

About Retirement Withdrawal Strategies

Determining a sustainable withdrawal rate is one of the most important decisions in retirement planning. Withdraw too much, and you risk running out of money. Withdraw too little, and you might unnecessarily sacrifice your quality of life.

Key considerations for your withdrawal strategy:

• The 4% Rule: A widely-cited guideline suggesting a 4% initial withdrawal rate with annual inflation adjustments may be sustainable for a 30-year retirement.
• Market Conditions: Consider using a lower initial withdrawal rate in high-valuation markets or during early market downturns.
• Flexibility: Being willing to reduce withdrawals during market downturns can significantly improve the sustainability of your plan.
• Longevity: If you expect to live well beyond average life expectancy, a more conservative withdrawal rate may be appropriate.
• Tax Considerations: Remember that withdrawals from different account types (traditional IRA, Roth, taxable) have different tax implications.

This calculator provides estimates based on constant returns and withdrawal rates. In reality, market returns fluctuate, and many retirees adjust their spending based on their portfolio performance and changing needs.