Savings Withdrawal Rate Guide (UK)
Your withdrawal rate is the percentage of your savings you use each year to fund your lifestyle.
Simple check
Annual spending ÷ total savings = annual withdrawal rate
Example: £24,000 yearly spending from £400,000 savings is a 6% withdrawal rate. Higher rates usually mean a shorter runway unless investment returns are strong and consistent.
Why this matters
- It gives a quick stress test of sustainability
- It helps compare different spending plans
- It highlights when part-time income could extend runway significantly