How to Think About a Sustainable Retirement Withdrawal Rate
A retirement withdrawal rate is the amount taken from a portfolio relative to its value. The sustainable rate is uncertain because future returns, inflation and longevity are uncertain.
Change the inputs and compare scenarios with the related RetirementMetric calculator.
Open the calculatorStart with spending need
Calculate the portfolio-funded spending gap after Social Security, pensions and other dependable income.
Model a range
Compare initial rates such as 3%, 3.5% and 4%, then examine how the plan behaves under weaker return assumptions.
Build flexibility
Discretionary spending, part-time income or the ability to temporarily reduce withdrawals can make a retirement plan more resilient.
How to use this number responsibly
Use the result as a planning range rather than a forecast. Re-run the calculation when your balance, contribution rate, debt, retirement date, tax situation or spending target changes. For investment projections, compare multiple return assumptions because future market returns are unknown.
What this calculator does not know
RetirementMetric does not know your complete tax situation, benefits, investment holdings, insurance needs or household expenses. The tools are educational estimates, not individualized investment, tax or legal advice.
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