1. What is the Retirement Withdrawal Calculator?

The Retirement Withdrawal Calculator helps estimate how long your retirement savings will last based on your initial balance, annual withdrawals, and expected investment growth rate.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Initial \) — Starting retirement balance in dollars
• \( \sum Withdrawals \) — Total withdrawals over the years
• \( Growth \) — Investment growth calculated annually

Explanation: The calculator projects your retirement balance year by year, subtracting withdrawals and adding investment growth each year.

3. Importance of Retirement Planning

Details: Proper retirement planning ensures you don't outlive your savings. This calculator helps you test different withdrawal strategies to find a sustainable rate.

4. Using the Calculator

Tips: Enter your initial retirement savings, planned annual withdrawals, number of years to project, and expected annual growth rate (as a decimal, e.g., 0.05 for 5%).

5. Frequently Asked Questions (FAQ)

Q1: What's a safe withdrawal rate?
A: The traditional "4% rule" suggests withdrawing 4% of your initial balance annually, adjusted for inflation.

Q2: Should I include Social Security in this calculation?
A: This calculator focuses on your investment portfolio. Social Security would reduce the amount you need to withdraw each year.

Q3: How should I estimate the growth rate?
A: Use a conservative estimate based on your asset allocation (e.g., 4-6% for balanced portfolios).

Q4: What about inflation?
A: For more accurate results, increase your withdrawals annually by inflation or use a real (inflation-adjusted) growth rate.

Q5: Can this calculator show year-by-year results?
A: This version shows the final balance. For detailed annual projections, consider more advanced retirement calculators.