Retirement & Pensions

Safe Withdrawal Rate

The percentage of retirement savings you can withdraw annually with a low risk of running out of money.

The commonly cited '4% rule' suggests withdrawing 4% of a portfolio's value in the first year of retirement, then adjusting that dollar amount for inflation each subsequent year, based on historical market research. It's a starting guideline rather than a guarantee, and many planners adjust it based on market conditions, portfolio composition, and expected retirement length.

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