Free Retirement Income Calculator 2026 - How Much Can I Withdraw in Retirement?
Calculate how much you can safely withdraw in retirement with our free retirement income calculator. Test the 4% rule, compare different withdrawal rates, and plan your retirement income strategy. Find out how much income you can generate from your retirement savings.
The 4% rule is a common starting point. Adjust based on your risk tolerance.
Note: This calculator provides estimates based on your inputs. Actual results will vary based on market performance, inflation, and other factors. Consider consulting with a financial advisor for personalized advice.
How Much Can I Withdraw in Retirement? Understanding the 4% Rule
The 4% Rule: One of the most popular retirement withdrawal strategies is the 4% rule, which suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting that amount for inflation each subsequent year. This rule was developed by financial planner William Bengen in 1994 and has been validated by numerous studies, including the Trinity Study.(Source: Federal Reserve)
How It Works: If you have $1 million saved for retirement, the 4% rule suggests you can withdraw $40,000 in the first year. If inflation is 3%, you'd withdraw $41,200 in year two, $42,436 in year three, and so on. This strategy has historically had a high probability of success over a 30-year retirement period with a balanced portfolio (50-75% stocks, 25-50% bonds).
Adjusting Your Withdrawal Rate: The 4% rule is a starting point, not a guarantee. You may need to adjust your withdrawal rate based on:
- Your risk tolerance and portfolio allocation
- Market conditions at the start of retirement
- Your life expectancy and health
- Other income sources (Social Security, pensions, rental income)
- Unexpected expenses or healthcare costs
Other Withdrawal Strategies: Some retirees prefer more conservative approaches (3% rule) for added security, while others may use dynamic withdrawal strategies that adjust based on market performance. Our calculator lets you test different withdrawal rates to see how they affect your retirement income and portfolio longevity.
Total Retirement Income: Remember that your total retirement income includes not just portfolio withdrawals, but also Social Security benefits, pensions, rental income, and other sources. Our calculator helps you see your complete retirement income picture. Calculate your Social Security benefits here.
Research Sources: The 4% rule is based on historical market data and retirement research. For more information, see theFederal Reserve research on the 4% rule and the originalBengen study.
Frequently Asked Questions - Retirement Income Calculator
The amount you can withdraw depends on your savings, expected returns, and withdrawal strategy. The 4% rule suggests withdrawing 4% of your portfolio in the first year, adjusted for inflation. However, you may need to adjust this based on your specific situation, market conditions, and other income sources. Our calculator helps you test different withdrawal rates and see how long your money will last.
The 4% rule suggests that retirees can safely withdraw 4% of their portfolio in the first year of retirement, then adjust that amount for inflation each subsequent year. This strategy has historically had a high probability of success over a 30-year retirement period with a balanced portfolio. The rule is based on research by William Bengen and the Trinity Study, which analyzed historical market data.
To calculate retirement income, add your guaranteed income sources (Social Security, pensions, rental income) to your portfolio withdrawals. Our retirement income calculator helps you determine sustainable withdrawal rates and project your total income over time, accounting for inflation and investment returns.
The 4% rule remains a useful starting point, but some experts suggest being more conservative (3-3.5%) given current market conditions and lower expected returns. The rule works best with a balanced portfolio and may need adjustment based on your specific situation, market conditions, and life expectancy. Our calculator lets you test different withdrawal rates to see what works for your situation.
A sustainable withdrawal rate is the percentage of your portfolio you can withdraw annually without running out of money during retirement. The 4% rule is a common benchmark, but your sustainable rate depends on your portfolio allocation, expected returns, inflation, life expectancy, and other income sources. Conservative investors may use 3%, while those with higher risk tolerance or shorter life expectancy may use 4-5%.
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