Question 1

How much income will my savings provide?

Accepted Answer

Your balance times your withdrawal rate. At 4%, a $500,000 balance provides about $20,000 a year before taxes.

Question 2

What withdrawal rate is safe?

Accepted Answer

Around 4% of the starting balance a year is a common guideline for a long retirement. Lower rates last longer; higher rates risk running out.

Question 3

Is this income taxed?

Accepted Answer

Withdrawals from traditional retirement accounts are taxed as income, so your spendable amount is lower. Roth and taxable accounts are treated differently.

Income From a Savings Plan

Your numbers

Annual income

Related calculators