Retirement Income Planning · Savings Longevity
How Long Will My Savings Last?
Pre-tax & Roth balances · Monthly withdrawals · Inflation-adjusted spending
Your Savings
$
Withdrawals from this balance are generally taxable as ordinary income.
$
Qualified Roth withdrawals are generally tax-free.
Withdrawal & Growth Assumptions
$
Withdrawn proportionally from both accounts, increasing with inflation each year. Shown gross — the amount actually available to spend from pre-tax withdrawals will be lower after income tax.
Your Savings Will Last
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—
Estimated Depletion
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—
Final Monthly Withdrawal
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inflation-adjusted
All withdrawal figures shown are gross — before any federal, state, or local income tax on pre-tax distributions.
Total Starting Balance
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pre-tax + Roth
Initial Withdrawal Rate
—
annualized, of starting balance
Real Rate of Return
—
return minus inflation
First-Year Withdrawals
—
total across 12 months
Projected Balance Over Time
Pre-tax balance
Roth balance
Roth balance
Assumptions & Methodology
Withdrawal order: Each month’s withdrawal is drawn proportionally from the pre-tax and Roth balances, based on their share of the total at that time — so the pre-tax/Roth mix stays constant throughout the projection.
Inflation adjustment: The monthly withdrawal amount increases by the entered inflation rate at the start of each subsequent year, preserving purchasing power over time.
Growth: The annual rate of return is applied monthly (compounded) to the remaining balance before that month’s withdrawal is deducted.
Gross of taxes: The monthly withdrawal amount is a gross figure. Pre-tax withdrawals are generally taxable as ordinary income, so the amount actually available to spend will be lower than shown once federal, state, and local income taxes are applied. Roth withdrawals are generally tax-free if qualified.
Not included: This tool does not account for Required Minimum Distributions, Social Security or pension income, market volatility or sequence-of-returns risk, or contributions. See this suite’s RMD Calculator for required distribution modeling.
This tool is for illustrative purposes only and assumes a constant, steady rate of return — actual markets fluctuate year to year. Consult a qualified financial advisor before making retirement income decisions.
Annual snapshot of your projected balance, based on the assumptions entered on the Calculator tab. Withdrawals shown are the total taken across each 12-month period.
| Year | Starting Balance | Annual Withdrawal | Pre-Tax Remaining | Roth Remaining | Year-End Balance |
|---|
Spending in Retirement
â—† The “4% Rule” — A Starting Point, Not a Guarantee
- A widely cited rule of thumb suggests an initial withdrawal rate near 4% of savings, increased annually for inflation, has historically had a strong chance of lasting 30 years.
- It was built on historical U.S. market returns and a fixed 30-year horizon — it may not reflect current valuations, your actual time horizon, or your specific portfolio mix.
- Use the Initial Withdrawal Rate metric above to see where your own plan falls relative to that benchmark.
âš Sequence-of-Returns Risk
- This tool assumes a constant, steady rate of return every year. Real markets don’t work that way — and a few poor years of returns early in retirement can permanently damage a portfolio’s longevity even if long-run average returns are unchanged.
- Withdrawing a fixed dollar amount during a market downturn locks in losses at the worst possible time. Some retirees use a “guardrails” approach, trimming withdrawals after down years.
✦ Pre-Tax vs. Roth Withdrawal Sequencing
- This calculator assumes a constant proportional draw from both account types. In practice, many retirees benefit from a more deliberate sequencing strategy — for example, spending down pre-tax dollars earlier to fill lower tax brackets, while letting Roth balances continue growing tax-free.
- The right order depends on your total tax picture, Medicare IRMAA thresholds, and future RMD obligations — see this suite’s Roth Conversion Advisor and RMD Calculator for related modeling.
â—† What This Tool Doesn’t Capture
- Required Minimum Distributions: once pre-tax accounts are subject to RMDs, the IRS may require withdrawals larger than the monthly amount modeled here.
- Other income sources: Social Security, pensions, part-time work, or rental income would reduce how much needs to come from savings.
- Taxes: pre-tax withdrawals are shown at face value, not net of the income tax that will be owed.
- Healthcare and long-term care costs: these often rise faster than general inflation and can be the largest late-retirement expense.