Retirement Withdrawal & Income Guide
Safe withdrawal rates, how long savings last, income from $500K–$2M, and how to calculate what you'll need.
The 4% Rule — At a Glance
Withdraw 4% of your portfolio in year 1, then adjust for inflation each year. Historically, this has lasted 30+ years in all market conditions since 1926.
Annual Retirement Income by Balance & Withdrawal Rate
| Savings Balance | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 6.0% |
|---|---|---|---|---|---|---|
| $250,000 | $7,500 $625/mo | $8,750 $729/mo | $10,000 $833/mo | $11,250 $938/mo | $12,500 $1,042/mo | $15,000 $1,250/mo |
| $500,000 | $15,000 $1,250/mo | $17,500 $1,458/mo | $20,000 $1,667/mo | $22,500 $1,875/mo | $25,000 $2,083/mo | $30,000 $2,500/mo |
| $750,000 | $22,500 $1,875/mo | $26,250 $2,188/mo | $30,000 $2,500/mo | $33,750 $2,813/mo | $37,500 $3,125/mo | $45,000 $3,750/mo |
| $1,000,000 | $30,000 $2,500/mo | $35,000 $2,917/mo | $40,000 $3,333/mo | $45,000 $3,750/mo | $50,000 $4,167/mo | $60,000 $5,000/mo |
| $1,500,000 | $45,000 $3,750/mo | $52,500 $4,375/mo | $60,000 $5,000/mo | $67,500 $5,625/mo | $75,000 $6,250/mo | $90,000 $7,500/mo |
| $2,000,000 | $60,000 $5,000/mo | $70,000 $5,833/mo | $80,000 $6,667/mo | $90,000 $7,500/mo | $100,000 $8,333/mo | $120,000 $10,000/mo |
* 4% column highlighted — the widely-recommended starting rate for a 30-year retirement.
How Long Will Your Savings Last?
| Annual Withdrawal | Monthly Budget | Withdrawal Rate | Years Until Depleted | Retire at 65: lasts to |
|---|---|---|---|---|
| $20,000/yr | $1,667/mo | 2.0% | ∞ | Never depletes |
| $30,000/yr | $2,500/mo | 3.0% | ∞ | Never depletes |
| $40,000/yr | $3,333/mo | 4.0% | ∞ | Never depletes |
| $50,000/yr | $4,167/mo | 5.0% | ∞ | Never depletes |
| $60,000/yr | $5,000/mo | 6.0% | ∞ | Never depletes |
| $75,000/yr | $6,250/mo | 7.5% | 27 years | Age 92 |
| $100,000/yr | $8,333/mo | 10.0% | 15 years | Age 80 |
* Assumes 6% average portfolio return during retirement, no inflation adjustment. Green = lasts 30+ years.
How to Calculate Your Retirement Income Needs
Start with current monthly expenses
List every spending category. This is your baseline — most categories stay roughly the same in retirement.
Subtract work-related costs
Remove: retirement contributions, commuting, work clothing, lunches out, professional memberships. These disappear at retirement.
Adjust for lifestyle changes
Add: travel, hobbies, dining. Subtract: mortgage if paid off, child-related expenses if kids are grown.
Add healthcare premium
Before Medicare (65), budget $500–$1,500/month for health insurance. After Medicare, plan for $200–$500/month plus out-of-pocket costs.
Multiply by 12 for annual target
This is your annual withdrawal need. Divide by 0.04 to find the required nest egg (4% rule), then subtract expected Social Security × 25.