Safe Withdrawal Rate By Age: How to Calculate

Planning how much to withdraw in retirement often starts with understanding the safe withdrawal rate by age. This concept helps retirees estimate how much they can spend each year without running out of money over time. While a 4% withdrawal rate has been a common benchmark, actual safe rates can vary depending on a retiree’s age, market conditions and life expectancy. Adjusting withdrawal strategies based on age can create more flexibility and help manage risks like inflation and longevity.

A financial advisor can help you create a plan for your retirement account withdrawals. Connect with an advisor today.

What Is a Safe Withdrawal Rate?

A safe withdrawal rate is the percentage of a retirement portfolio that can be withdrawn each year without significantly increasing your risk of running out of money over your lifetime. It’s intended to be a guideline for balancing spending needs with asset preservation.Instead of a single fixed number, the safe withdrawal rate reflects the relationship between market returns, inflation, life expectancy and personal risk tolerance.

The 4% rule is a commonly-used benchmark for determining how much money to withdraw in retirement each year. This rule says that withdrawing 4% of an initial retirement portfolio and adjusting this amount annually for inflation will allow savings to last at least 30 years.

For example, say you have $2 million saved for retirement. Following the 4% rule, you could withdraw $80,000 per year for 30 years and never drain your retirement account balance to $0. However, the rule doesn’t take into account your desired retirement lifestyle, spending habits and needs. 

Traditional vs. Updated Safe Withdrawal Rates

While the 4% rule became a cornerstone of retirement planning, its creator, William Bengen, has since updated his guidance. In his 2025 book “A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More,” Bengen argues that retirees can actually withdraw at least 4.7% in their first year of retirement without undue risk. He has even suggested that under current conditions, many retirees may sustain withdrawal rates as high as 5.25% to 5.5%. ¹

These new figures reflect changes in market assumptions and improved modeling of retirement outcomes. At the same time, many retirement planners continue to recommend more conservative rates, often between 3% and 4%, especially for younger retirees with longer time horizons. In practice, the “safe” rate depends not just on market performance but also on age, health, lifestyle and willingness to adjust withdrawals as conditions change.

Safe Withdrawal Rates By Age

Age directly influences how much you can safely withdraw each year. The earlier retirement begins, the longer your savings need to last. The longer you delay retirement, the more you may be able to withdraw later. That’s an important consideration if you’re weighing an early retirement.

Early Retirement (Ages 50-60)

Retiring in your 50s usually calls for a more conservative withdrawal approach. Assuming you’re healthy and stay that way, your retirement can last 35 years or longer. Over that span, even modest overspending early on can dramatically increase the risk of running out of money. For that reason, many financial models suggest starting with a withdrawal rate closer to 3%. 

If you think you may need to withdraw from a traditional 401(k) or IRA before age 59 ½, remember that a 10% early withdrawal penalty may apply. The rule of 55 allows you to bypass the penalty for 401(k) withdrawals. This rule says that you can take penalty-free early withdrawals from an employer-sponsored retirement plan if you:

• Separate from service
• Turn 55 in the year you separate from service

This rule applies only to your most recent employer’s plan; you can’t use it to take early withdrawals without a penalty from old 401(k)s from previous employers. Public service employees, including EMTs and firefighters, can benefit from this rule even earlier if they retire at 50.

A lower withdrawal rate may be best if you’re focused on minimizing expenses in retirement to stretch your savings further.  For example, if you retire at 55 with $3 million, a 3% withdrawal rate would generate $90,000 in the first year before any early withdrawal penalty is applied. While $90,000 is quite a bit of money, it still requires careful budgeting to make it last.

If you’re in this age group, you could make your savings last by delaying major nonessential purchases, seeking part-time income or using taxable accounts to cover expenses so your tax-advantaged accounts continue to grow.Building in flexibility—such as adjusting withdrawals downward during market downturns—can help stretch your investment portfolio’s life.

Traditional Retirement Age (Ages 60-70)

Retiring between ages 60 and 70 generally offers more flexibility when choosing a safe withdrawal rate Conservative planning models often suggest a 3.5% to 4% withdrawal rate, though again, Bengen’s 2025 research indicates retirees in this age range could begin at closer to 4.7% or higher.

Imagine you retire at 62 with a $2 million portfolio and expect Social Security benefits of $30,000 per year starting at 67. Before claiming Social Security, you might withdraw approximately $94,000 per year using a 4.7% rate. Once Social Security kicks in, you might slightly reduce portfolio withdrawals to extend the life of your investments.

Some retirees taper down withdrawals later in life, which reflects the general trend of expenses declining as you age. Others may adopt a more flexible plan that allows higher withdrawals during strong market years and lower ones during downturns.

Late Retirement (Ages 70+)

Choosing to retire after age 70 allows for higher initial withdrawal rates, since your retirement horizon is shorter. Delaying Social Security until 70 can yield a larger benefit amount, and some retirees may have pension income they can count on as well. While conservative models place a safe withdrawal rate for older retirees between 4.5% and 5%, Bengen suggests that you could potentially withdraw up to 5.5% without increasing risk.

Suppose you retire at 73 with $800,000 in retirement savings. A 5% withdrawal rate would offer $40,000 in the first year, supplemented by Social Security payments that you began collecting at age 70.

Required minimum distributions (RMDs) also start at 73 (75 for people born in 1960 or later). Withdrawal strategies at this stage often shift from asset preservation to asset decumulation, since failing to take RMDs on time can trigger a steep penalty. Many retirees at this age prioritize enjoying their wealth rather than focusing on portfolio longevity.

Avoid costly mistakes and use our RMD calculator to help you make sure you’re taking the right amount:

Adjusting for Health, Market Conditions and Spending Needs

While age is a major factor, personal circumstances also matter. Health, lifestyle choices and economic developments can lead to more conservative or more aggressive withdrawal adjustments.

For example, retirees in excellent health may still prefer a lower withdrawal rate at 70, anticipating the need for funds well into their 90s. Conversely, someone with significant health challenges may prefer a higher rate, focusing on maximizing quality of life.

Market downturns can also influence withdrawal strategies. Some retirees adopt flexible withdrawal rules, such as reducing withdrawals after poor market years, to help portfolios recover. Adjusting withdrawals based on actual conditions rather than following a fixed percentage may be preferable. This approach means retirees can better align their spending with reality as they age.

Alternative Strategies

Several alternative approaches to managing retirement withdrawals offer more flexibility than using a static safe withdrawal rate by age.

Dynamic Withdrawals

One method is dynamic withdrawals, where retirees adjust spending annually based on portfolio performance. In strong market years, they withdraw more. In downturns, they reduce spending to protect the portfolio. This type of real-time approach allows you to react to market changes as they occur, which can make it easier to balance risk. 

Guardrails Approach

The guardrails approach is an offshoot of the dynamic withdrawals. With guardrails, you set upper and lower portfolio limits to trigger withdrawal adjustments. If the portfolio grows significantly, you can safely spend more. If it falls below your lower limit threshold, you can curb withdrawals. 

Bucket Strategy

The bucket strategy divides assets into segments based on time horizons. A commonly used approach splits retirement savings into three buckets:

• Short-term. Your short-term bucket holds money you anticipate needing in the next 1 to 4 years. This money is typically held in cash or bonds to give you the benefit of safety, liquidity and modest growth.
• Intermediate. The intermediate or middle term bucket is for money you’ll need in 5 to 10 years. Investments may include dividend stocks or bonds with longer maturities, which can provide steady but stable growth.
• Long-term. The long-term bucket is for funds you won’t need for at least 10 years. The assets in this bucket are generally higher risk, which can help your retirement balance grow even as you draw funds from your other buckets. 

The bucket strategy offers a predictable path forward for withdrawing retirement funds. However, you can’t set it and forget it. You’ll still need to keep an eye on your asset allocation and rebalance if needed to stay aligned with your targets. That’s something a financial advisor can help with. 

Annuitization

Some retirees purchase immediate or deferred income annuities to secure guaranteed income and reduce portfolio withdrawals. An annuity is an insurance contract that you purchase for a premium, in order to receive payments at a later date. Converting a portion of assets into predictable monthly payments lets retirees create a baseline of income to cover non-discretionary expenses.

The Role of Longevity in Withdrawal Planning

Safe withdrawal rates by age offer guidelines on how much to pull from your retirement savings but longevity risk can pose a threat to your withdrawal plans. The longer you live, the harder your investments may need to work to maintain your preferred withdrawal rate. 

Couples in particular face this challenge because the odds are high that at least one spouse will live into their 90s. A plan designed around average life expectancy may underestimate the number of years withdrawals are required, leaving the surviving spouse with less income later in life.

For example, a 65-year-old couple today has roughly a 50% chance that one partner will live past 90. If their $2 million portfolio is drawn down at 4.7% annually, the withdrawals may look sustainable for 25 years, but extending that horizon to 30 or 35 years exposes the portfolio to a much greater risk of depletion. Adding a few years of longevity can shift a plan from secure to vulnerable, especially if combined with market downturns or unexpected expenses.

Healthcare is another factor that intensifies longevity risk. The later years of retirement are often more expensive because of medical and long-term care costs. A couple withdrawing $100,000 annually in their early retirement years may find that by their mid-80s, healthcare costs alone require an additional $20,000 or more per year. Without planning for higher late-life expenses, the withdrawals needed to cover these costs can shrink your savings faster.

A withdrawal strategy built with longevity in mind may need to start more conservatively, or it may combine systematic withdrawals with guaranteed income sources such as annuities or pensions. By treating longevity as a key factor, rather than an afterthought, you can create a more resilient plan that adapts to both time and uncertainty.

Bottom Line

Safe withdrawals require a unique approach depending on when retirement begins, how long assets need to last and personal spending needs. Age often shapes the starting point for withdrawal rates, but strategies can evolve over time to reflect changes in health, market conditions and lifestyle. Fixed rates, dynamic adjustments, bucket strategies and annuitization all offer ways to manage income sustainably. Building flexibility into a withdrawal plan can help retirees adapt over time rather than relying on a single formula.

Retirement Planning Tips

• A financial advisor can help evaluate your retirement portfolio and recommend strategies to grow and protect it. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Mandatory distributions from a tax-deferred retirement account can complicate your post-retirement tax planning. Use SmartAsset’s RMD calculator to see how much your required minimum distributions will be.

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