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4% vs 5% vs 6% withdrawal rule

The withdrawal rate you pick at retirement decides whether your corpus outlives you or the other way round. See the same retirement play out at three different rates.

Corpus at retirement

₹

Expected annual return, in retirement

Inflation, in retirement

Each year's withdrawal rises with inflation, same lifestyle in real terms.

Retirement horizon

yrs

First year's withdrawal, at each rate

4% rule	₹0 / yr
5% rule	₹0 / yr
6% rule	₹0 / yr

4% rule

—

5% rule

—

6% rule

—

Year	4% rule — balance	5% rule — balance	6% rule — balance

Balances grow at one fixed assumed return and withdrawals rise at one fixed assumed inflation rate every year — real markets don't move in a straight line, and a bad sequence of returns early in retirement hurts far more than the average return suggests. Backtested and simulated results do not guarantee future returns.