Retirement Withdrawal Calculator

Category: Retirement

- August 01, 2025

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Calculate how long your retirement savings will last based on your initial balance, withdrawal rate, and expected investment returns.

This calculator helps you estimate a sustainable withdrawal strategy to ensure your retirement funds last as planned.

Retirement Portfolio

Initial Portfolio Balance:

Your Current Age:

Withdrawal Strategy

Withdrawal Method:

Monthly Withdrawal:

Investment Assumptions

Expected Annual Return (%):

Expected Inflation Rate (%):

Asset Allocation:

0% Stocks 50% 100% Stocks

Stocks: 60%

Bonds: 40%

Advanced Options

Effective Tax Rate (%):

Expected Longevity (age):

Include State Pension benefits

Decimal Places:

Retirement Withdrawal Analysis

Portfolio Longevity

30 years

Until Age 95

Annual Withdrawal

£48,000

First Year

Safe Withdrawal Rate

4.8%

Of Initial Balance

Total Withdrawals

£1,440,000

Lifetime

Remaining Balance

£237,651

At Expected Longevity

Portfolio Balance Projection

Detailed Projection

View by:

Year	Age	Starting Balance	Withdrawals	Growth	Ending Balance

Calculation Explanation

About Retirement Withdrawal Strategies

Determining a sustainable withdrawal rate from your retirement savings is crucial to ensure your funds last throughout your retirement years. Different withdrawal strategies have varying impacts on your portfolio's longevity.

Common Withdrawal Strategies

Fixed Pound Amount: Withdrawing the same pound amount each month, regardless of market performance.
Percentage of Portfolio: Withdrawing a fixed percentage of your current portfolio balance annually (e.g., the 4% rule).
Fixed Amount + Inflation Adjustment: Starting with a fixed amount and increasing it annually to account for inflation.

Factors Affecting Portfolio Longevity

Withdrawal Rate: Higher withdrawal rates deplete funds faster.
Investment Returns: Higher returns extend portfolio life, but come with increased risk.
Asset Allocation: The mix of stocks and bonds affects both returns and volatility.
Inflation: Higher inflation rates reduce purchasing power over time.
Market Sequence Risk: Poor returns in early retirement years can significantly impact long-term sustainability.

The 4% Rule

The widely cited "4% rule" suggests withdrawing 4% of your initial portfolio balance in the first year of retirement, then adjusting this amount annually for inflation. This strategy was designed to provide a high probability that retirement funds would last at least 30 years, based on historical market performance.

However, this rule should be considered a starting point rather than a strict guideline. Your optimal withdrawal rate depends on many personal factors including retirement timeframe, risk tolerance, and other income sources.

Understanding the Retirement Withdrawal Calculator

The Retirement Withdrawal Calculator is a handy tool for anyone planning their retirement. It helps you see how long your savings might last based on your current savings, how much you plan to withdraw, and your expected Investment returns. This can be especially helpful in making informed decisions about your Financial future. By using this calculator, you can create a sustainable withdrawal strategy that fits your needs.

How to Use the Calculator Effectively

Using the Retirement Withdrawal Calculator is straightforward. You’ll begin by entering your initial portfolio balance, your age, and details about your withdrawal strategy. You can choose how much you want to withdraw each month or set a percentage of your portfolio. This will provide you with a tailored analysis of how long your funds may last in retirement.

Key Features of the Calculator

Initial Balance Input: Enter your starting savings amount, which sets the foundation for your calculations.
Withdrawal Method: Choose between fixed dollar amounts, a percentage of your portfolio, or an inflation-adjusted amount.
Investment Assumptions: Input expected annual returns and inflation to enhance your projections.
Asset Allocation: Adjust your stock and bond ratios to see how they affect your retirement funds.

Why Withdrawal Strategies Matter

Choosing the right withdrawal strategy can make a significant difference in how long your savings last. Different methods have distinct impacts on your portfolio. For instance, withdrawing a fixed amount each month can lead to faster depletion if the market performs poorly. On the Other hand, withdrawing a percentage might offer more flexibility but can also fluctuate based on market conditions.

Considering Inflation and Returns

Inflation and investment returns are critical factors in your retirement plan. Inflation can erode your purchasing power over time, while higher investment returns can help your portfolio grow. The calculator lets you input both expected returns and inflation rates, providing a more accurate picture of your financial future. This way, you can adjust your strategy to account for these changes.

Understanding Portfolio Longevity

One of the key outputs from the Retirement Withdrawal Calculator is the estimated longevity of your portfolio. This tells you how long your savings might last, given your input assumptions. It’s essential for planning, as it helps you identify if your current withdrawal strategy is sustainable. Having this information allows you to make adjustments when necessary, ensuring you don’t run out of money during retirement.

Advanced Options for Tailored Analysis

Tax Rate Consideration: Input your effective tax rate to see how taxes will affect your withdrawals.
Social Security Benefits: Include your expected social security income for a realistic assessment of your total income.
Longevity Inputs: Enter your expected longevity to understand how long your funds need to last.

Maximising Your Retirement Finances

The Retirement Withdrawal Calculator empowers you to make informed decisions about your finances. By understanding how different withdrawal strategies, investment returns, and inflation rates affect your savings, you can optimise your approach to retirement. This tool serves as an essential resource for anyone looking to retire comfortably and confidently.