Safe Withdrawal Rate: How Much You Can Withdraw from Savings Without Running Out

When you retire, your safe withdrawal rate, the percentage of your retirement savings you can take out each year without running out of money. Also known as the 4% rule, it’s the foundation of most retirement plans—but it’s not one-size-fits-all. This isn’t just about numbers. It’s about making sure your money lasts as long as you do. Too much, and you risk running dry. Too little, and you might miss out on the life you saved for.

The 4% rule, a widely studied guideline suggesting you withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year came from a 1998 study that looked at historical market data from 1926 to 1995. It worked for most scenarios—but today’s markets, longer lifespans, and lower interest rates mean it’s not a guarantee. Your portfolio sustainability, how long your investments will last based on withdrawals, returns, and expenses depends on more than just a fixed percentage. Asset allocation, sequence of returns, taxes, and even healthcare costs all play a role. If half your savings are in stocks and the market drops hard in your first year of retirement, even 3% might be too risky.

Some people use dynamic withdrawal strategies—adjusting how much they take based on how their portfolio is doing that year. Others build in buffers, like keeping two years’ worth of expenses in cash. Your retirement planning, the process of preparing for life after work by estimating income needs, savings targets, and withdrawal strategies isn’t done once you hit 65. It’s a live system you check every year. A 5% withdrawal might work fine if you’re healthy, have no debt, and your portfolio is mostly bonds. But if you’re 70, have a chronic illness, and your portfolio is 80% stocks? That same 5% could be dangerous.

You won’t find one magic number that works for everyone. But you can find what works for you. The posts below show real examples: how people adjusted their withdrawal rates after market crashes, how early retirees managed with lower returns, and what happens when inflation hits harder than expected. You’ll see tools, checklists, and real-life numbers—not theory. Whether you’re planning to retire next year or still have a decade to go, this collection gives you the facts to make smarter decisions. No fluff. No hype. Just what actually keeps money in your pocket when you’re no longer earning a paycheck.