Safe Withdrawal Rate (SWR)
The safe withdrawal rate (SWR) is the maximum percentage of your portfolio you can withdraw each year in retirement with high confidence that your money will last your entire lifetime.
2 min read · Updated June 2026
The most famous SWR is 4%, from the Trinity Study, which found that a 4% annual withdrawal from a diversified portfolio survived virtually every 30-year historical period.
Your retirement duration is the most important factor. The Trinity Study assumed 30 years. Someone retiring at 40 needing 50+ years may need a more conservative 3-3.5% rate.
Other factors include portfolio allocation, flexibility to cut spending during downturns, supplementary income sources, and access to government pensions or social security.
Sequence of returns risk — poor returns early in retirement — is the biggest threat to any withdrawal strategy. Dynamic strategies that adjust withdrawals based on portfolio performance can significantly improve longevity.
The SWR is a planning tool, not a rigid rule. Your specific circumstances should inform your personal withdrawal strategy.
Richify's AI agents model different withdrawal scenarios for your specific situation, helping you find the SWR that balances security with maximising the life your money enables.
