What Really Happens When You Withdraw 10% In Retirement

You're 62, you just retired, and there's a million dollars in the account. Ten percent is $100,000 a year. Add $25,000 from Social Security and you're living better than you did while working. Here's what actually happens to that plan. At a smooth 7% return, a flat $100,000 a year empties the account in 16 years. Give yourself a 3% raise each year to keep up with prices and it's 13 — you'd be 75, with $41,000 left and a decade of life still ahead. In this video: The honeymoon paycheck, and why year one feels like proof it works The break-even problem — the exact return a 10% withdrawal needs just to stand still Sequence of returns: retire in January 2000 at 10% and the account empties during 2007, while a 4% plan still holds $460,000 in 2014 Inflation creep, and why a flat withdrawal isn't actually flat The quiet cliff: year 10 $411K, year 11 $300K, year 12 $177K, year 13 $41K The three situations where 10% genuinely does work The safer rule, and Morningstar's 2026 figure of 3.9% At 5% with inflation raises the same million lasts 37 years. At 7%, 21. Dean Finance — honest, no-hype conversations about money and retirement. Educational content only, not personal financial advice. #Retirement #4PercentRule #RetirementIncome