The 4% Rule suggests that you can withdraw 4% of your portfolio in the first year of retirement, and adjust that amount for inflation every subsequent year, with a high probability (95%+) that your money will last for at least 30 years.

How does inflation affect my withdrawals?

Inflation reduces your purchasing power. If you need $50,000 this year, you might need $51,500 next year just to buy the same goods (assuming 3% inflation). A good withdrawal plan MUST increase your income annually to keep up with costs.

What happens if the market crashes?

This is called 'Sequence of Returns Risk.' A crash early in retirement is devastating because you are selling assets at low prices. It helps to have a cash cushion (1-2 years of expenses) so you don't have to sell stocks during a downturn.

Retirement Withdrawal Calculator | Will My Money Last? | Finmato

Plan Your Exit Strategy

Saving for retirement is like climbing a mountain. Withdrawal is the descent—and it's actually the more dangerous part. If you spend too fast, you risk running out of money. If you spend too slow, you deny yourself experiences you worked decades to afford. Our Retirement Withdrawal Calculator helps you find the perfect balance, ensuring your nest egg supports you for life.

The Danger of "Drawdown"

Retirement withdrawal isn't just simple subtraction. It involves three dynamic forces fighting against each other:

Growth: Your investments (stocks/bonds) trying to earn more money.
Withdrawals: You taking money out to pay for bills and travel.
Inflation: The cost of living rising every year, forcing you to withdraw more over time.

How to Use This Tool

Be conservative with your estimates to build a safety margin:

Current Savings: Total value of 401(k), IRA, and brokerage accounts.
Annual Spending: How much you need *from your portfolio* (subtract Social Security/Pension income first!).
Investment Return: Assume 5-7% for a balanced portfolio. Don't assume 10%+.
Inflation Rate: Historically 3% is a safe baseline.

Early Retirees (FIRE)

Retiring at 40? You need your money to last 50+ years. The standard "4% Rule" might be too risky—consider 3.5% or 3%.

Traditional Retirement

Retiring at 65? Your money needs to last ~25-30 years. You can afford a slightly higher withdrawal rate.

Leaving an Inheritance

Want to leave $100k to your kids? Adjust your withdrawal rate until the "Final Balance" matches your legacy goal.

Frequently Asked Questions

Should returns be adjusted for inflation?

You can do it two ways: 1) Use a "Real Rate of Return" (e.g., 7% growth - 3% inflation = 4% Real Return) and set inflation to 0%. OR 2) Use Nominal Return (7%) and Nominal Inflation (3%). Our calculator supports both methods.

What is "Sequence of Returns"?

It refers to the *order* in which you get your investment returns. Getting -20% in Year 1 of retirement is much worse than -20% in Year 20. If the market crashes early, you might deplete your principal too fast.

What tax rate should I assume?

It depends on the account. Roth IRA withdrawals are tax-free. Traditional 401(k) withdrawals are taxed as ordinary income. A safe estimate is to withhold 15-25% for taxes from your gross withdrawal.

Financial Advise Disclaimer

This calculator provides a deterministic model. It does not account for variable market volatility (Monte Carlo simulations) or unexpected health expenses. Consult a fiduciary financial advisor.

Data Privacy

We do not store your financial data. This calculator runs entirely in your browser.

Retirement Withdrawal Calculator

Portfolio Longevity