Safe Withdrawal Rate Calculator
Safe Withdrawal Rate: a planned Super Calculator tool. Covers portfolio value (currency). Stub page while the tool and its worked example are prepared.
Safe Withdrawal Rate Calculator is a planned calculator in the finance section of Super Calculator, covering retirement.
What this calculator will compute
Inputs: portfolio value (currency), annual spending (currency), horizon (years), asset allocation (%), inflation adjustment method and fees (%).
Outputs: success probability (%), maximum sustainable withdrawal (currency), failure year distribution and terminal wealth distribution.
Formula, recorded as scope and not yet verified against a primary source: Tests a withdrawal schedule against historical return sequences or a Monte Carlo distribution, reporting the proportion of paths in which the portfolio survives the horizon. The 4% figure comes from a specific study of United States data over a 30 year horizon with a particular asset allocation, and it is contested for other countries and longer horizons.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.