What is a Sustainable Withdrawal Rate?


When it comes to retirement planning, one of the biggest concerns for most individuals is making sure their money will last.​ After years of saving and investing, the last thing anyone wants is to run out of funds during their golden years.​ One strategy that can greatly help in ensuring financial stability in retirement is determining the sustainable withdrawal rate.​

What is a Sustainable Withdrawal Rate?​

A sustainable withdrawal rate refers to the percentage of funds that can be safely withdrawn from a retirement portfolio on an annual basis, without depleting the principal.​ This rate takes into account a number of factors, including the projected lifespan of the retiree, inflation, investment returns, and any other sources of income or expenses.​

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