Retirement drawdown

Once you stop adding to your savings and start withdrawing from them instead, the question flips: how long will the balance actually last? This calculator models your savings going up or down each year as withdrawals come out and investment growth goes in.

It can help you answer questions like:

• Will my savings actually last as long as I need them to?
• How much could I safely withdraw each year without running out too soon?
• What happens if I withdraw a bit more, or a bit less, each year?

What you’ll need to enter:

• Savings balance — your total savings at the point you start withdrawing. (Example: $600,000.)
• Annual withdrawal — how much you plan to take out each year. (Example: $40,000.)
• Expected annual return — the yearly growth rate you expect on the remaining balance while it’s still invested. (Example: 5%.)

How it works
Each year, we grow the balance by your expected return, then subtract your annual withdrawal — repeating that year by year until the balance reaches zero.

What the result tells you
With the example numbers, $600,000 withdrawing $40,000 a year at a 5% return is projected to last about 29 years. If your withdrawal is lower than what the balance earns each year, the savings technically never run out — the calculator will tell you when that’s the case.

A few things worth testing with this calculator:

1. Try a slightly lower withdrawal. Dropping your annual withdrawal even a little can add years onto how long the balance lasts — see how sensitive the result is in your situation.
2. Don’t assume a fixed return every year. Real investment returns go up and down year to year — this calculator uses a steady average to keep things simple, so treat the result as a guide, not a guarantee.
3. Factor in other income. If you’ll have other income during retirement (like a pension), you may not need to withdraw as much from these savings, which changes the picture.
4. Review the numbers regularly. Update the balance and withdrawal amount each year so the projection stays realistic as your situation and the markets change.

In short: this gives you an early read on whether your withdrawal plan is sustainable, so you can adjust before it becomes a problem rather than after.