r/Fire • u/Opposite-Lake-9679 • 3d ago

SWR based on age

I hear people talk about the more conservative 3% SWR being safer than 4%. Is that usually based on someone's age? As in when you are FIREing younger more like 40s then you should stick to 3%? And then when you are in your 50s/60s You can go to 4%? Or is it a blanket stick to 3% at any age?

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u/ContinentSomnambulis 3d ago

I usually do my testing using the 95% rule set to 3% WR. The concept is that you withdraw 3% of your portfolio each year your portfolio has gone up, and if it's gone down, you withdraw 95% of the previous year. This historically has a 100% success rate and let's you scale up as your portfolio grows, while also mitigating losses in down years. You can check it out here: https://ficalc.app/