Why use the real (after-inflation) return instead of nominal minus inflation?

This tool uses the exact Fisher relation, real = (1 + nominal) / (1 + inflation) − 1, not the nominal-minus-inflation shortcut. With a 5.5% return and 3% inflation the exact real return is 2.43%, while the shortcut gives 2.5% — about 7 basis points too high. Over a 30-year retirement that small error compounds into a meaningful overstatement of how long your money lasts.

Is this retirement withdrawal planner free, and is it financial advice?

It is 100% free with, and all math runs privately in your browser. It is an educational planning tool, not financial advice. It assumes a constant annual return and inflation, so it cannot capture sequence-of-returns risk (a market crash early in retirement) the way a Monte Carlo or historical-sequence simulation can. Taxes, fees, and required minimum distributions are not modeled. Consult a fiduciary or CFP for an actual retirement-income plan.

Retirement Withdrawal Planner

Q: What is a safe withdrawal rate?

A safe withdrawal rate (SWR) is the percentage of your starting retirement balance you can withdraw in year one — then increase by inflation each year — without running out of money over your planning horizon. The classic '4% rule' (Bengen, 1994) means withdrawing 4% of your initial balance in year one, not 4% of the current balance every year. Bengen's 2025 update raised his worst-case rate to about 4.7%, while Morningstar's 2026 forward-looking base case is about 3.9% given current valuations. This free planner lets you compare the 3.3%, 4.0%, and 4.7% scenarios.

Q: How long will my retirement savings last?

The planner simulates your savings year by year in today's dollars: each year it withdraws your desired income and grows the remaining balance by the real (after-inflation) return. It reports how many years the money lasts — including a fractional final year — or tells you it lasts beyond your planning horizon. Withdrawing more than a sustainable rate, or having a return that doesn't beat inflation, shortens how long your money lasts.

Q: Should my desired income include Social Security or a pension?

No. Enter only the amount your portfolio must supply — your total spending minus Social Security, pension, annuities, and any other income. Including those sources double-counts money the portfolio doesn't need to provide and makes your withdrawal rate look dangerously high.

Safe withdrawal rate & how long your savings last — in today's dollars.

Current retirement savings

The portfolio you'll draw down from.

Desired annual income

Today's dollars, net of Social Security & pension.

Expected return % / yr

Nominal (headline), before inflation. Enter as a number, e.g. 5.5 (not 5.5%).

Inflation % / yr

Long-run US CPI ≈ 3%.

Retirement horizon (years)

How long the money must last.

Safe withdrawal rate %

E.g. 3.3% (conservative) to 4.7% (aggressive). Use a preset or type your own. Enter as a number, e.g. 4 (not 4%).

Recommended safe annual withdrawal

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Retirement Withdrawal Planner — guide & how to use

Not financial advice. This is an educational planning tool, not financial, tax, or legal advice. It projects a deterministic result from the fixed assumptions you enter — real markets vary year to year. Its biggest limitation is that it assumes a constant annual return and inflation, so it cannot capture sequence-of-returns risk (a crash early in retirement can deplete a portfolio far faster than a constant-return model shows). For success-probability ranges, use a Monte Carlo or historical-sequence tool (e.g. cFIREsim). Taxes, fees, and required minimum distributions are not modeled. Consult a fiduciary or CFP for an actual retirement-income plan. All math runs in your browser — nothing is sent anywhere.

What it does

This planner answers the two questions every retiree asks: how much can I safely take out, and how long will my money last. From your starting balance, desired income, expected return, inflation, and horizon it calculates a recommended safe withdrawal, simulates your savings year-by-year in today's dollars to find when they deplete, computes the maximum income that lasts your full retirement, shows the implied withdrawal rate of your desired spending, and compares the three current benchmark rates (3.3% / 4.0% / 4.7%).

How to use it

Enter your current savings and the annual income you want the portfolio to supply (today's dollars, after Social Security and any pension).
Set your expected return (nominal/headline), inflation, and horizon.
Pick a safe withdrawal rate — tap a preset to compare conservative vs. aggressive — and read your headline safe withdrawal, the verdict banner, and how long your desired income lasts.

A worked example

Suppose you have $500,000, want $40,000/year, expect a 5.5% nominal return with 3% inflation, over a 30-year horizon, using a 4% safe-rate assumption:

Real return (Fisher): (1 + 0.055) / (1 + 0.03) − 1 = 2.4272% (the shortcut 5.5% − 3% = 2.5% overstates it).
Recommended safe withdrawal: 4% × $500,000 = $20,000/year (≈ $1,667/month) in today's dollars.
Implied rate of your desired income: $40,000 / $500,000 = 8.0% — double the 4% guideline, so the verdict is RED.
How long $40,000/yr lasts: withdrawing $40,000 at the start of each year and growing the rest at 2.4272% real, the balance is exhausted in about 14.7 years — well short of the 30-year plan.
Max sustainable income for 30 years: using the real annuity formula, about $23,100/year (today's dollars). Spend up to that to make the money last the whole horizon.

Numbers are illustrative and rounded for display; the tool keeps full precision internally.

How the math works

Real return (exact Fisher relation): r_real = (1 + r_nom) / (1 + i) − 1. We never use the nominal-minus-inflation shortcut and never round the real return.
Recommended safe withdrawal: SWR × starting balance in year one, then increased by inflation each year (the Bengen convention — a fixed year-one dollar amount, not a fixed percentage of the changing balance).
Years to depletion: a year-by-year loop in real dollars. Each year we withdraw your constant desired income at the start of the year (the conservative timing assumption) and grow what's left by the real return. We report the fractional final year so the answer is precise (e.g. "lasts 14.3 years"). When the real return is zero or negative the loop still terminates cleanly — no divide-by-zero.
Max sustainable income: the largest constant real withdrawal that lasts exactly your horizon, from the start-of-year real annuity formula W = B × g / [(1 + g)(1 − (1 + g)^−N)] (and B / N when the real return g is zero).
Nominal schedule: the year-t dollar withdrawal is W₀ × (1 + i)^t−1 — the table shows both the constant real amount and the rising nominal amount so you can see why spending must increase.

Accuracy notes & assumptions

Constant-return model. Real markets don't deliver a smooth average. A poor sequence of early returns can deplete savings much faster than this projection — its single biggest limitation.
The "4% rule" is an initial-amount rule. It means 4% of your starting balance in year one, then inflation-adjusted — not 4% of the current balance each year.
Standards differ by method. Bengen's updated worst-case "Universal SAFEMAX" is about 4.7% (broader assets, 30 years) and he suggests many retirees can do 5.25–5.5%; Morningstar's 2026 forward-looking base case is about 3.9% (90% success). We offer 3.3% / 4.0% / 4.7% presets so you can see the sensitivity.
Withdrawal timing: withdrawals are taken at the start of each year (conservative — depletes about one year earlier than end-of-year timing).
Pre-tax, portfolio-only. Withdrawals are pre-tax and assume your desired income is what the portfolio alone must supply. Taxes, fees, RMDs, and Roth-vs-traditional differences are not modeled.
Diversified portfolio assumed. SWR research assumes a rebalanced stock/bond mix; results don't apply to all-cash or concentrated holdings.
Early retirement: for 40–50+ year horizons a lower rate (3–3.5%) is more defensible because forward returns are uncertain.

How to embed this tool on your website

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Frequently asked questions

What is a safe withdrawal rate?

The percentage of your starting balance you withdraw in year one and then inflate annually without running out over your horizon. The classic 4% rule (Bengen 1994) fixes the year-one dollar amount; Bengen's 2025 update raised the worst-case to about 4.7%, while Morningstar's 2026 forward-looking base case is about 3.9%.

How long will my retirement savings last?

The planner withdraws your desired income each year in today's dollars and grows the rest by the real return, reporting the year (including a fractional final year) the money runs out — or that it lasts beyond your horizon.

Why the exact Fisher real return, not nominal minus inflation?

With 5.5% return and 3% inflation the exact real return is 2.43% vs. the 2.5% shortcut — about 7 basis points too high, which compounds meaningfully over 30+ years. We always use the exact form.

Should my desired income include Social Security or a pension?

No — enter only what the portfolio must supply. Including other income double-counts and inflates your apparent withdrawal rate.

What if my return doesn't beat inflation?

That's a negative real return — valid and common. The portfolio shrinks in real terms every year; the loop still terminates and the tool flags it. Depletion roughly follows balance ÷ desired income in that case.

Is it really free?

Yes. 100% free, and everything runs in your browser — none of your numbers leave your device.

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Add this planner to your site

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<iframe src="https://snaptoolsuite.com/retirement-withdrawal-planner/?embed=1"
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Everything is calculated in your browser. We don't store or sell your data. Not financial advice.