Educational use only. Not financial, investment, tax or legal advice.

Wondering where the 4% rule comes from and why Bill Bengen now recommends 4.7%? Watch the original interview.

Watch: Bill Bengen on the 4% Rule

How much can you safely withdraw from your retirement portfolio?

The 4% rule gives a starting point, not a guarantee. On a £300,000 pot that is £12,000 in year one, then adjusted for inflation each year. On a 30-year UK retirement with a poor early market, 4% can run the pot down to nothing. Most UK planners now use 3.5% to 4% to give the same appetite.

Use the calculator above for your own number. The results show your withdrawal rate, the years your money lasts, and the final balance. Adjust the return and inflation assumptions to see the range.

Safe Withdrawal Rate Calculator UK

Find out if your retirement savings will last. Calculate your safe withdrawal rate and see how long your money will stretch in retirement.

Your Retirement Details

Conservative (1%)Average (5%)Optimistic (10%)
Low (0%)Average (2.5%)High (8%)

Your Withdrawal Analysis

Your Withdrawal Rate
4%
Safe rate: 4%
Years Money Lasts
23
Retirement Length
23 years
Looking Good!
Your withdrawal rate is sustainable. Your portfolio should last throughout retirement.
Projected Final Balance
£490,231

What is a Safe Withdrawal Rate?

The safe withdrawal rate (SWR) is the maximum amount you can withdraw from your retirement savings each year without running out of money before you die.

The 4% Rule

Based on the Trinity Study, 4% is historically safe for a 30-year retirement. UK investors may prefer 3.5% for added security.

Key Factors

Your withdrawal rate depends on retirement length, expected returns, inflation, and how flexible your spending can be.

Dynamic Strategy

Variable withdrawal strategies can sometimes sustain higher initial rates by adjusting spending based on portfolio performance.

Your Retirement Portfolio Projection

This chart shows projected portfolio balance over your retirement years. The balance assumes constant 5% annual returns and2.5% annual inflation adjustment to your withdrawals.

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Frequently Asked Questions

How the safe withdrawal rate calculator works

Your withdrawal rate is your annual retirement spending divided by your total retirement savings. The calculator then runs your pot forward year by year: it grows by your expected return, and your spending is withdrawn, rising each year with the inflation rate you enter. It stops at your life expectancy or when the money runs out.

What the results mean

  • Withdrawal rate: your first year's spending as a percentage of your pot.
  • Years your money lasts: how long the pot funds your spending under these assumptions.
  • Sustainable: shown when your withdrawal rate is 4% or less and the money lasts to your life expectancy.
  • Final balance: what is left at the end, which could fund later-life care or an inheritance.

About the 4% rule

  • The 4% rule comes from US research (Bengen, 1994) on 30-year retirements. Some UK analyses suggest a lower starting rate, so treat 4% as a starting point rather than a guarantee.
  • This calculator uses the same return every year. Real returns vary, and a fall in the first years of retirement does the most damage; the Monte Carlo retirement calculator shows that range of outcomes.
  • Flexible approaches, such as cutting spending after a poor year, can support a higher starting rate. The State Pension, once it starts, reduces how much your pot has to provide.