The "Monthly Safe Withdrawal" recommended amount on the Advice Tab for retirement income goals is based on our retirement income model that assumes you update your withdrawal amount and allocation at least annually according to our recommendations, and that your age and lifetime horizon are correct. The recommendations will vary based on market performance, your cashflows and allocation changes. If you follow this advice, updating at least annually, we estimate that there is a 1% or less chance of depleting your portfolio before the end of your designated time horizon.
This is based on our research which uses Monte Carlo simulation. Withdrawal amounts are not guaranteed income. You should consider all of your sources of income both guaranteed and variable, as well as your expected cost of living, to make a cohesive income plan.
You can read more in our resource center article about retirement income