Retirement Spending guide
This calculator simulates annual retirement withdrawals that rise with inflation, then estimates whether the portfolio lasts through your chosen retirement horizon.
Example scenario
A $1,000,000 portfolio funding $45,000 of first-year spending starts at a 4.5% withdrawal rate. If inflation is 2.5%, withdrawals rise over time, so the initial rate alone is not enough.
Calculation method
Each year, the portfolio grows by the expected return, then the inflation-adjusted withdrawal is subtracted.
Common mistakes
Ignoring inflation is the biggest mistake. A comfortable first-year budget may become much larger over a 30-year retirement.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
FAQ
Does this guarantee retirement success?
No. It is a deterministic scenario calculator. Real returns vary by year.
Why include pension or passive income?
Any reliable income lowers the amount your portfolio must fund.
What if the portfolio depletes?
That means the tested spending level may be too high for the assumptions.