{
  "slug": "how-much-can-i-withdraw-in-retirement",
  "title": "How Much Can I Withdraw in Retirement?",
  "heading": "How Much Can I Withdraw in Retirement?",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/how-much-can-i-withdraw-in-retirement",
  "summary": "On a $1,000,000 portfolio, the 4% safe withdrawal rule allows about $40,000 a year, or $3,333 a month.",
  "description": "The 4% rule, based on historical market research, suggests you can withdraw 4% of your portfolio in year one of retirement and adjust that dollar amount for inflation each year after, with a low risk of running out of money over a 30-year retirement. This calculator applies your chosen withdrawal rate to your portfolio and also shows more conservative and aggressive alternatives.",
  "formula": "Annual Withdrawal = Portfolio Balance × Withdrawal Rate. Monthly Withdrawal = Annual Withdrawal ÷ 12.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=how-much-can-i-withdraw-in-retirement",
  "inputs": [
    {
      "id": "portfolio",
      "label": "Retirement portfolio balance",
      "kind": "number",
      "hint": null,
      "default": 1000000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "withdrawalRate",
      "label": "Withdrawal rate",
      "kind": "number",
      "hint": null,
      "default": 4,
      "unit": "%",
      "min": 2,
      "max": 8
    }
  ],
  "outputs": [
    {
      "id": "annual",
      "label": "Annual withdrawal",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "monthly",
      "label": "Monthly withdrawal",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Retirement portfolio balance: 1000000 $",
      "Withdrawal rate: 4 %"
    ],
    "outputs": [
      "Annual withdrawal: $40,000",
      "Monthly withdrawal: $3,333"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter retirement portfolio balance ($).",
      "Enter withdrawal rate (%).",
      "Read your annual withdrawal on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "portfolio": 600000,
        "withdrawalRate": 2.4
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "portfolio": 1000000,
        "withdrawalRate": 4
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "portfolio": 1600000,
        "withdrawalRate": 6.4
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How much can I withdraw in retirement?",
      "a": "On a $1,000,000 portfolio using the classic 4% rule, you can withdraw $40,000 in year one of retirement (about $3,333/month), then adjust that dollar amount upward each year for inflation."
    },
    {
      "q": "Is the 4% rule still considered safe?",
      "a": "It's debated — some researchers now suggest 3-3.5% is safer for retirements lasting longer than 30 years or starting during high market valuations, while others argue 4-5% is fine with flexible spending in down years."
    },
    {
      "q": "Does the 4% rule mean I withdraw a fixed 4% every year?",
      "a": "No — the classic rule sets the dollar amount in year one (4% of the starting balance) and then increases that same dollar amount for inflation each subsequent year, rather than recalculating 4% of the fluctuating balance annually."
    },
    {
      "q": "What if my portfolio drops significantly early in retirement?",
      "a": "This is 'sequence of returns risk' — a market downturn in your first few retirement years can meaningfully raise your risk of running out of money even at 4%, which is why many retirees build in spending flexibility for bad years."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/how-long-will-my-savings-last",
    "https://www.revenuelab.fyi/toolbox/how-much-to-save-for-retirement"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — How Much Can I Withdraw in Retirement? (https://www.revenuelab.fyi/toolbox/how-much-can-i-withdraw-in-retirement)"
}