Retirement
Withdrawal Rate
Also known as: Withdrawal Percentage, Drawdown Rate, Spending Rate
The percentage of retirement portfolio withdrawn annually to fund living expenses.
Detailed Explanation
Withdrawal Rate represents the annual percentage of a retirement portfolio that is withdrawn to meet living expenses. The traditional 4% rule suggests withdrawing 4% of the initial portfolio value annually, adjusted for inflation. However, Indian retirees may need more flexible withdrawal strategies (3.5-5.5% bands) to account for market volatility, healthcare inflation, and longevity risk. The withdrawal rate directly impacts how long a retirement corpus will last.