A retirement withdrawal calculator answers the decumulation question: now that you’ve saved, how much can you actually spend each year without running out? It models drawing your balance down across retirement, alongside Social Security, and shows whether your planned spending is sustainable and how long it lasts.
It’s pre-filled for a retiree at 65 with $1,000,000 spending $50,000 a year — adjust the balance, spending, and other income to fit your plan.
Fixed vs flexible withdrawals
The classic approach fixes a first-year withdrawal — say 4% — and raises it with inflation regardless of markets. It’s simple and predictable, but it ignores what your portfolio is actually doing, which can be risky in a long downturn.
Flexible strategies adjust spending to conditions: taking a little less after bad years and a little more after good ones. They’re less predictable year to year but stretch a portfolio much further, because you stop drawing heavily from a shrinking balance.
Guardrails: a middle path
Guardrail strategies set an upper and lower bound around your withdrawal rate. If a market drop pushes your rate above the upper guardrail, you trim spending; if strong returns drop it below the lower one, you give yourself a raise. It keeps spending mostly steady while protecting against running out.
You don’t need a complicated system to benefit from the idea — simply being willing to ease off in bad years is most of the value. The calculator’s what-if chips let you see how spending less changes your runway.
Putting it together
Start from a sustainable rate for your horizon, layer in Social Security to cover the baseline, and keep a cash buffer so you’re never forced to sell investments at the worst time. Then check the projected depletion age above and adjust until your money comfortably outlasts your plan.
Remember withdrawals from pre-tax accounts are taxable, so plan in after-tax spending terms, and revisit the numbers every few years as markets and your needs change.
Frequently asked questions
How much can I withdraw from my retirement savings?
A common sustainable starting point is about 4% of your balance in the first year, adjusted for inflation — $40,000 on $1 million — on top of Social Security. The calculator shows how long that lasts and lets you test other rates.
What is a safe withdrawal rate?
Roughly 4% for a 30-year retirement is the common benchmark, with 3.0–3.5% favored for longer horizons or cautious plans. The right rate balances the income you want against the risk of running out.
Should my withdrawals be fixed or flexible?
Fixed withdrawals are predictable but ignore markets; flexible or guardrail strategies adjust spending to conditions and stretch a portfolio further. Even a willingness to spend a little less in bad years makes a big difference.
Do I pay tax on retirement withdrawals?
Withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income, so budget in after-tax terms. Roth withdrawals are generally tax-free, and a mix of account types gives you flexibility to manage taxes.