# Safe Withdrawal Rate

*Retirement & Benefits — Finicade finance glossary*

A safe withdrawal rate is the percentage of a portfolio you can spend in year one, adjusted for inflation thereafter, without running out. The 4% rule comes from US historical data over 30-year retirements and is a starting point, not a law: it assumes a specific asset mix, ignores fees and taxes, and a longer retirement or a poor first decade demands less. Flexible spending rules outperform any fixed number.

**Formula:** `Portfolio needed ≈ Annual spending × 25 (at a 4% rate)`

**Also known as:** 4% rule, sustainable withdrawal rate, SWR

**Related terms:** [Sequence of Returns Risk](https://finicade.com/glossary/sequence-of-returns-risk), [FIRE (Financial Independence, Retire Early)](https://finicade.com/glossary/fire), [Longevity Risk](https://finicade.com/glossary/longevity-risk), [Bucket Strategy](https://finicade.com/glossary/bucket-strategy), [Defined Contribution Plan](https://finicade.com/glossary/defined-contribution-plan)

Source: https://finicade.com/glossary/safe-withdrawal-rate