Can I use this for my 401(k) in the USA?

Yes, absolutely. This calculator is perfect for planning your 401(k) or IRA distributions. Simply enter your total savings, planned monthly withdrawal, and expected growth rate to see a projection.

Is this the same as an SWP Calculator for India?

Yes. This tool performs the exact function of a Systematic Withdrawal Plan (SWP) calculator. It helps you see how withdrawing a fixed amount from your mutual fund investments will affect your principal over time.

Does this work for UK Pension Drawdown?

Yes, this calculator can model a 'flexi-access drawdown' scenario. It helps you understand the sustainability of your withdrawal strategy from your UK pension pot.

Retirement Withdrawal Calculator

Disclaimer: This calculator provides an estimate for informational purposes only and does not constitute financial advice. Investment returns are not guaranteed. Consult a qualified financial advisor to discuss your personal retirement strategy.

Select Currency

Total Investment / Retirement Corpus

Desired Monthly Withdrawal

Expected Annual Growth Rate (%)

Your Fund Will Last For Approximately:

0 Years & 0 Months

This is an estimate based on the inputs provided. Real-world returns can vary.

How Does This Work?

This calculator simulates how your retirement savings might deplete over time based on a few key factors. It runs a month-by-month calculation to project the future of your investment corpus.

Starting Point: The calculation begins with your total investment amount.
Monthly Growth: Each month, the tool first calculates the investment growth on your remaining balance based on the annual growth rate you provide.
Monthly Withdrawal: After adding the growth, it subtracts your fixed monthly withdrawal amount.
Repeat: This process repeats for each subsequent month until the balance reaches zero, giving you an estimate of how many years and months your fund will last.

The Surprising History: The "4% Rule"

The concept of a "safe withdrawal rate" was famously popularized in the 1990s by financial advisor William Bengen. He conducted a study on historical stock and bond returns and made a surprising discovery: a retiree could withdraw **4%** of their initial portfolio value in the first year of retirement, and then adjust that amount for inflation each following year, and the portfolio would have been likely to last for at least 30 years.

This simple "4% Rule" revolutionized retirement planning by providing a straightforward benchmark. While it's not a foolproof guarantee and is still debated today, it was the first data-driven attempt to answer the critical question for retirees: "How much can I safely spend?" Our calculator allows you to test your own withdrawal rate against your portfolio to see how sustainable it might be.

Explore More Related Tools

Planning your financial future involves many pieces. Use our other tools to get a clearer picture:

Retirement Calculator: Estimate how much you need to save for retirement.
SIP Calculator: See how small, regular investments can grow over time.
Compound Interest Calculator: Understand the power of compounding on your savings.
Inflation Calculator: See how inflation affects the future value of your money.
401(k) / Roth IRA Calculator: Plan your contributions to these specific retirement accounts.
Pension / Annuity Calculator: Estimate your income from a pension or annuity plan.
Budget Calculator: Create and manage your monthly budget.
Investment ROI Calculator: Calculate the return on any investment.
Fixed Deposit (CD) Calculator: Calculate maturity amounts for fixed-term deposits.
NPS Calculator: For users in India planning with the National Pension System.

Frequently Asked Questions for Global Users

For USA Users: Can I use this for my 401(k) or IRA?

Yes, absolutely. This calculator is perfect for planning your 401(k) or IRA distributions. It helps you test different withdrawal strategies to see how sustainable they are. However, it does not account for taxes on withdrawals or Required Minimum Distributions (RMDs), which you should discuss with a financial advisor.

For UK Users: Does this work for Pension Drawdown?

Yes, this tool can simulate a 'flexi-access drawdown' scenario. It helps you visualize how your withdrawal rate and investment performance could affect the longevity of your pension pot. Remember, this is a simplified model and does not include UK tax implications.

For India Users: Is this an SWP Calculator?

Yes, this calculator performs the exact function of a Systematic Withdrawal Plan (SWP) calculator. You can enter your mutual fund investment amount, monthly withdrawal need, and expected return to see how long your investment can sustain the SWP.

For Australia Users: Can I plan my Superannuation withdrawals?

Absolutely. You can use this calculator to model the 'retirement phase' of your Superannuation. It helps you understand how different withdrawal amounts will impact your super balance over time, allowing for better planning.