Safe Withdrawal Rate Calculator
The Safe Withdrawal Rate (SWR) is a crucial concept for retirement planning. It represents the percentage of your total retirement savings that you can withdraw each year without significantly depleting your principal, thus increasing the likelihood that your savings will last throughout your retirement. The most commonly cited SWR is 4%, derived from historical market data analysis by financial planner William Bengen. However, this rate is not universally applicable and can be influenced by various factors like market conditions, investment allocation, time horizon, and personal spending habits.
Using an SWR calculator can help you estimate how much you can safely withdraw annually from your retirement nest egg. This involves understanding your current retirement savings and your expected annual expenses. By inputting these figures, the calculator can provide a starting point for your retirement income strategy. Remember that this is a guideline, and consulting with a financial advisor for personalized retirement planning is always recommended.
function calculateSWR() {
var totalSavings = parseFloat(document.getElementById("totalSavings").value);
var withdrawalRate = parseFloat(document.getElementById("withdrawalRate").value);
var resultDiv = document.getElementById("result");
if (isNaN(totalSavings) || isNaN(withdrawalRate) || totalSavings < 0 || withdrawalRate < 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for total savings and withdrawal rate.";
return;
}
var annualWithdrawalAmount = (totalSavings * withdrawalRate) / 100;
resultDiv.innerHTML = "
Your Results:
";
resultDiv.innerHTML += "With total retirement savings of $" + totalSavings.toLocaleString() + " and a withdrawal rate of " + withdrawalRate + "%, you can withdraw approximately
$" + annualWithdrawalAmount.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " per year.";
resultDiv.innerHTML += "This calculation is based on the provided figures and is a guideline for retirement planning.";
}
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