Safe Withdrawal Rate Calculator

This calculator works out the sustainable income you could draw from a retirement pot in New Zealand using a safe withdrawal rate, the best known of which is the four percent rule. The idea, drawn from decades of market history, is that if you withdraw around four percent of your savings in the first year of retirement and then adjust the dollar amount for inflation each year, your pot has a good chance of lasting roughly thirty years, surviving the ups and downs of markets along the way. It is one of the most useful rules of thumb in retirement planning because it turns a savings balance into a spending figure you can actually live on. You enter your retirement pot and the withdrawal rate you want to use, and the calculator shows the sustainable income per year, per month and per week. Use it to see what income your savings can realistically support, or to work backwards to the pot you need for a target income. The four percent rule is a guide, not a guarantee: it comes from United States data, some prefer a slightly lower rate for caution, and poor returns early in retirement, known as sequence risk, can still strain a pot. Most New Zealanders also have NZ Super on top, easing the load on savings. General information, not financial advice.

A guideline, not a guarantee; some prefer a lower rate for caution. NZ Super provides income on top. Watch sequence-of-returns risk early in retirement. General information only.