Glossary
What is a safe withdrawal rate?
A safe withdrawal rate is the percentage of a portfolio a retiree can take each year with a high probability of the money lasting. It is a probability estimate produced by a model, not a guarantee, and it is highly sensitive to the assumptions behind it.
Any stated rate is only as good as its inputs: the time horizon, the asset allocation, the assumed returns, and whether spending is allowed to flex.
The more useful question is usually not what percentage you can take, but where it comes from and what happens if the first few years are poor. A plan that answers those questions is worth more than a percentage that answers neither.
Dynamic approaches — where spending adjusts within guardrails rather than staying rigid — generally support higher initial withdrawals than a fixed rule, because they let the plan respond instead of grinding on regardless.
Let us find out what your portfolio can actually pay you.
Thirty minutes to see where your income will come from. If we are not the right fit, we will tell you.