For a more conservative estimate, use a safe withdrawal rate of 3% or 3.5%. The shockingly un-simple math behind retirement safe withdrawal rates, with Karsten Jeske, PhD (Part 2) Hack Your Wealth. A 4% safe withdrawal rate is considered a good rule of thumb. The safe withdrawal rate defaults to 4%, and is the rate at which you can withdraw your accumulated savings without ultimately running out of money. 036: The Shockingly Simple Math Behind Early Retirement by Mister Money Mustache of (Podcast Episode 2016) on IMDb: Plot summary, synopsis, and more. If you are experiencing blank or invalid results, try refreshing your browser. Additional details about the factors and calculations can be found after the calculator. ![]() The calculator automatically updates when you enter information. What makes accumulation relatively simple is that you have two forces that go in the same direction. And what I found was what’s not so shockingly simple is then the withdrawal math. Once the calculator determines the first year in which you can withdraw 100% of your current annual spending (which is indirectly determined by your savings rate) at your safe withdrawal rate, it outputs the number of years remaining until you retire as well as your expected age and calendar year of retirement. It’s the shockingly simple math of achieving retirement. The calculator assumes that you save consistently at your stated savings rate throughout the year and that your investment gains also accrue evenly throughout the year. By comparison, the S&P 500 historically returns about 7% annually. The annual rate of return reflected your investment gains, excluding inflation, and defaults to 6%. You do not have to provide your age, but it is used to calculate the age at which you can retire. ![]() You can also input your current total savings, as measured in years of take-home pay, as well as your expected annual rate of return and safe withdrawal rate.
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