RETIREMENT CHANNEL
Retirement Withdrawal Calculator
Calculate how long your retirement nest egg will last given custom annual withdrawals.
Calculator Variables
Calculation Overview
Estimate how many years your retirement portfolio will last based on your annual spending, growth, and inflation.
Mathematical Model & Formula
Loop: B_t = [B_{t-1} * (1 + r)] - (W * (1 + i)^t)
Compiles yearly interest returns and deducts inflation-linked withdrawals to track cash flow exhaustion.
Variables Defined:
- B_t: Balance in year t
- W: Initial annual withdrawal
- i: Annual inflation percentage
Worked Example Scenario
Scenario: Egg = $1M, Spend = $50k, Growth = 6%, Inflation = 2.5%.
- Year 1 compounding: balance becomes $1.06M
- Withdraw $50k: balance becomes $1.01M
- Inflation adjusts next year withdrawal to $51,250.
Result: Longevity is computed recursively.
Frequently Asked Questions
What is sequence of returns risk?
The danger of experiencing down market cycles in the early years of retirement, which can drain your principal much faster than standard averages predict.