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Retirement Withdrawal Calculator

Enter your savings, a first-year withdrawal, an expected return and inflation. $800,000 with a $40,000 first-year withdrawal at 5 percent return lasts 26 years.

How the retirement withdrawal calculator works

This calculator shows how long a pot of savings can support yearly withdrawals that rise with inflation. Each year the withdrawal is taken at the start of the year, the remaining balance earns the return, and the next withdrawal is increased by inflation. It stops when the balance cannot cover a full withdrawal.

The formulas

Withdrawal in year t = First withdrawal x (1 + inflation)^(t-1)
Next balance = (Balance – Withdrawal) x (1 + return)
Withdrawal rate = First withdrawal / Starting balance

Example: A balance of $800,000 with a first withdrawal of $40,000 is a 5% withdrawal rate. At 5 percent return and 2.5 percent inflation the savings last 26 years, and the 30-year balance reads: Depleted before 30 years.

Notes and limits

  • Real returns are not smooth. Poor early returns hurt more than the average suggests.
  • Taxes, Social Security, pensions and other income are not included.
  • This is a simple illustration, not a retirement plan. Consider speaking to a licensed advisor.

Figures are estimates for planning and are not financial advice. Check your own agreement or statement for exact terms.

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    Frequently asked questions

    How long will my retirement savings last?

    It depends on balance, withdrawals, return and inflation. The default case lasts 26 years.

    What is a withdrawal rate?

    The first year withdrawal divided by the starting balance. The default is 5%.

    Does it adjust for inflation?

    Yes. Each year the withdrawal rises by the inflation rate you enter.

    What is a safe withdrawal rate?

    There is no single safe rate. It depends on time horizon, returns and flexibility. Many planners discuss rates near 4 percent as a rule of thumb.

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