AIER's Retirement Withdrawal Calculator    
    This calculator offers a guideline for retirees estimating how much they can safely spend from savings.

It will tell you how much you could have safely spent each year based on expected returns and your desired level of certainty so that you won't outlive your savings.

The results are pre-tax and do not include other income, such as annuities, Social Security, or pension income.

For married couples, we assume both retire at the same time. Please select the age of each spouse on that date. The calculator does not adjust for couples retiring at different times. It assumes a planning horizon for the spouse likely to live longest.

More details can be found in our research brief "How to Formulate a Retirement Spending Plan."

Please note that this is for illustrative purposes only. Historical returns are no guarantee of future results. Please use this tool to get an approximate idea of how much you can safely withdraw from your savings. This information can help inform discussions with financial advisers and planners.
 
    Step 1: Select your marital status, age at retirement, and a desired level of
             certainty to estimate your planning horizon.*

  
 
     
    Marital status**
 
    Male age at retirement
 
    Female age at retirement
 
    How certain do you want to be that you will not outlive your planning horizon?
 
    Recommended Planning Horizon (Years)  
    Step 2: Input portfolio assumptions. Select a stock allocation, estimated savings, fees, and the certainty that you want your savings to last.  
     
    Proposed stock allocation***
 
    Estimated savings  
    How certain do you want to be that your portfolio will last at least the length of the estimated planning horizon above?
 
    Approximate management fees (include any fund expenses)
 
    Step 3: Your results, an estimated annual pre-tax withdrawal (updates automatically), based on your planning horizon, portfolio assumptions, and your desired level of certainty.  
     
    Results:    
     
     
     
    Add Social Security, annuities, pensions, and other income for an
estimate of total retirement income.
 
         
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    *The recommended planning horizon is determined based on your personal characteristics and desired level of certainty and the Social Security Administration's 2010 Period Life Table. To adjust the planning horizon, change the desired level of certainty so that you will not outlive the horizon. This planning horizon is subject to many factors including your health and genetic make-up.  
     
    **The model assumes male/female partners for the life expectancy calculation. Women tend to live longer than men. Same-sex partners would therefore be expected to have slightly different life expectancies. Female/female couples should consider increasing the certainty level, given that they are likely to live longer, whereas male/male couples may consider decreasing it for their relatively shorter life expectancies.  
    ***The model assumes that the remainder of the portfolio will be invested in U.S. Treasurys. We model U.S. Treasury returns using monthly returns on 5-Year U.S. Treasury Notes.  
****Based on historical market return data from 1926 through 2014. Stock returns based on CRSP Total Market Index. Bond returns based 5-year U.S. Treasury returns. Maximum result provided is 10% spending amount. Outcomes based on historical simulations and bootstrapped Monte Carlo simulations with historical data. To the extent that future returns are less than past returns, these estimates may result is worse than projected outcomes. For illustrative purposes only. Please consult a financial professional before making critical financial decisions.