The safe withdrawal rate is the percentage of a retirement portfolio you can withdraw each year, adjusted for inflation, without a high risk of running out of money over your lifetime. The best-known benchmark is the 4% rule, derived from historical US market data in the Trinity study.
Worked example
With a $1,000,000 portfolio and a 4% withdrawal rate, you could withdraw $40,000 in the first year, then adjust that amount for inflation each year thereafter.
Why it matters
The withdrawal rate determines how large a portfolio you need: at 4% you need 25× expenses; at 3% you need about 33×. Early retirees with multi-decade horizons often choose a lower rate for extra safety.
Try it with your own numbers: FIRE Number Calculator
Also useful: Sequence of Returns Calculator
Read the full guide
Frequently asked questions
It was based on US history, and global outcomes have varied. Many planners apply a more conservative rate or build in flexibility to spending to account for this.
Built & maintained by Worthmap · Last updated September 12, 2026
Educational use only. This tool provides estimates for informational purposes and does not constitute financial, investment, tax, or legal advice. Results are based on inputs you provide and mathematical models, they do not guarantee future performance. Always consult a qualified financial adviser before making investment decisions.