Personal Finance Intermediate

Safe Withdrawal Rate (SWR)

💡 In plain English: The percentage of your portfolio you can withdraw each year without running out of money over a 30-year retirement.

Definition

The maximum annual withdrawal percentage from a retirement portfolio that historically has not depleted the portfolio over a 30-year period.

📌 Real-World Example

The '4% rule': ₹1Cr portfolio → withdraw ₹4L/year (4%). Historically, this survives 95%+ of 30-year periods. For longer retirements (40+ years), 3–3.5% is safer.

🔢 Formula

Annual Withdrawal = Portfolio × SWR%
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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

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