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Definition

Safe Withdrawal Rate (SWR)

The yearly percentage of a retirement portfolio you can withdraw with low risk of running out of money over a 30-year retirement.

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

Safe Withdrawal Rate (SWR) is The yearly percentage of a retirement portfolio you can withdraw with low risk of running out of money over a 30-year retirement. Used in retirement.

What Is Safe Withdrawal Rate (SWR)?

The 4% rule, popularized by the Trinity Study, suggests withdrawing 4% of your portfolio in year one and adjusting that dollar amount for inflation each year. More conservative FIRE planners use 3.0–3.5% to account for longer retirements and lower expected returns.

Related Terms

Rule of 72
A shortcut: divide 72 by annual return % to estimate years until money doubles.
Rate of Return
The gain or loss on an investment over a period, expressed as a percentage.

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