Finance
Safe Withdrawal Rate (SWR)
The percentage of a retirement portfolio that can be withdrawn annually without depleting the portfolio over a given time horizon. The classic research-based rate is 4% (the '4% Rule').
Drawn from historical market research, the 4% guideline aims to sustain a portfolio across a ~30-year retirement through varied returns. Longer horizons, richer valuations, or lower expected returns often push planners toward a more conservative 3–3.5%.
Key Formula & Relationship
The “4% Rule”: withdraw ~4% of the starting portfolio, adjusted for inflation
Reviewed by the Calculover Editorial Team for mathematical and practical accuracy.
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