Work out the income a savings pot can safely provide each year.
The safe withdrawal approach takes a fixed percentage of the portfolio each year, so a million-dollar pot at four percent provides forty thousand dollars of income. Withdrawal rates near four percent are designed to last decades. The withdrawn percentage determines both income and how long savings last, making it the central retirement planning lever.
Safe Withdrawal
Income = nest egg x withdrawal rate
Income = nest egg x withdrawal rate The safe withdrawal approach takes a fixed percentage of the portfolio each year, so a million-dollar pot at four percent provides forty thousand dollars of income. Withdrawal rates near four percent are designed to last decades.
The withdrawn percentage determines both income and how long savings last, making it the central retirement planning lever.
This calculator takes 2 inputs: Nest egg, Withdrawal rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.