This calculator helps you estimate a sustainable withdrawal rate from your 401k during retirement. Understanding your withdrawal rate is crucial for ensuring your retirement savings last throughout your lifetime. A common guideline is the 4% rule, which suggests withdrawing no more than 4% of your retirement portfolio's value in the first year of retirement, and then adjusting that amount annually for inflation. However, personal circumstances, market performance, and desired retirement longevity can all influence what a safe withdrawal rate truly is for you.
function calculateWithdrawalRate() {
var current401kBalance = parseFloat(document.getElementById("current401kBalance").value);
var desiredAnnualWithdrawal = parseFloat(document.getElementById("desiredAnnualWithdrawal").value);
var retirementDurationYears = parseFloat(document.getElementById("retirementDurationYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(current401kBalance) || isNaN(desiredAnnualWithdrawal) || isNaN(retirementDurationYears)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (current401kBalance <= 0 || desiredAnnualWithdrawal <= 0 || retirementDurationYears <= 0) {
resultDiv.innerHTML = "Please enter positive values for all fields.";
return;
}
// Calculate the withdrawal rate as a percentage
var withdrawalRate = (desiredAnnualWithdrawal / current401kBalance) * 100;
// Calculate the number of years the current balance would last at the desired withdrawal
var yearsSustained = current401kBalance / desiredAnnualWithdrawal;
resultDiv.innerHTML += "Calculated Withdrawal Rate: " + withdrawalRate.toFixed(2) + "%";
resultDiv.innerHTML += "Based on your current balance and desired annual withdrawal, your funds could potentially last approximately " + yearsSustained.toFixed(1) + " years.";
// Interpretation based on common guidelines (e.g., 4% rule)
if (withdrawalRate > 4) {
resultDiv.innerHTML += "Note: Your desired withdrawal rate is higher than the commonly suggested 4% guideline. This could increase the risk of depleting your funds sooner than planned, especially with market volatility and inflation.";
} else if (withdrawalRate === 4) {
resultDiv.innerHTML += "Note: Your desired withdrawal rate aligns with the commonly suggested 4% guideline. This is often considered a sustainable rate, but actual results depend on market performance and inflation.";
} else {
resultDiv.innerHTML += "Note: Your desired withdrawal rate is below the commonly suggested 4% guideline, which generally increases the likelihood of your funds lasting throughout your retirement.";
}
// Add context about retirement duration
if (yearsSustained < retirementDurationYears) {
resultDiv.innerHTML += "Warning: Your current balance at the desired withdrawal amount may not sustain you for your entire expected retirement duration of " + retirementDurationYears + " years.";
} else {
resultDiv.innerHTML += "Your funds appear to be on track to last for your expected retirement duration of " + retirementDurationYears + " years based on this calculation.";
}
}
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
margin-bottom: 20px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-container button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
border: 1px solid #eee;
border-radius: 4px;
background-color: #fff;
font-size: 16px;
line-height: 1.6;
}
.calculator-result p {
margin-bottom: 10px;
}
.calculator-result strong {
color: #333;
}