MarinBMWZ4 asks,

How do you account for the SWR calculation when you have other fixed income sources? For example, say my SS income could be $2150 a month if I retire at 66, 8 months. My pension could be an additional $1200. The net is now $3350. If I want to have a net monthly income of say $5000 I only need $1650 more. So, it might be that my other assets can throw of a SWR of 4% on $1M ($40k a year) or $3330 a month or almost 50% more than I need.

This discussion of SWR doesn't account for any of these fixed income sources.


SWR (safe withdrawal rate) is the amount you can safely withdraw from your investment portfolio. If you have other income, you can retire on a smaller nest egg.

For example, say I need $80,000/yr to live on. A 4% SWR would tell me I need $2 million in savings before I'm able to retire. If I have a $25,000/yr pension and $15,000/yr in Social Security, I only need to draw $40,000 from my portfolio. Then I can retire on only $1 million.

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