Question 1

What does this calculator estimate?

Accepted Answer

This calculator simulates your retirement portfolio drawdown year by year. You enter your starting savings, the amount you plan to withdraw each year, your expected annual return, inflation rate, and withdrawal timing. The calculator projects how long your portfolio may last, your estimated depletion age, your first-year withdrawal rate, and how your inflation-adjusted withdrawals grow over time.

Question 2

What is the difference between Beginning of Year and End of Year withdrawal timing?

Accepted Answer

Beginning of Year timing means each withdrawal is taken at the start of the year before investment returns are applied — this is slightly more conservative because your withdrawals reduce the balance before growth is applied. End of Year timing means growth is applied first, then the withdrawal is taken — this gives your portfolio slightly more growth each year. Over a long retirement, the difference can add or subtract several years of portfolio longevity.

Question 3

What is the first-year withdrawal rate and why does it matter?

Accepted Answer

The first-year withdrawal rate is your initial annual withdrawal divided by your starting portfolio balance. It is one of the most commonly used benchmarks in retirement planning. A rate under 3.5% is generally considered conservative; 3.5–5% is in the moderate watch zone; above 5% places greater pressure on your portfolio, especially over long retirements. These are illustrative ranges — not guaranteed thresholds. Actual sustainability depends on returns, inflation, retirement length, and factors this calculator does not model.

Question 4

Why does inflation affect my withdrawal amount over time?

Accepted Answer

Each year, your withdrawal amount is increased by the inflation rate to maintain the same real purchasing power. For example, a $30,000 withdrawal today at 2.5% inflation becomes approximately $38,400 after 10 years and $49,200 after 20 years. This inflation compounding is a major factor in portfolio longevity — portfolios with low return rates relative to inflation can deplete significantly faster than a simple nominal calculation would suggest.

Question 5

What does the Sustainability Status mean?

Accepted Answer

Sustainable means your portfolio lasts 30 years or through the full 50-year horizon. Watch means it lasts 20–29 years — adequate for many retirement scenarios but worth monitoring. At Risk means 10–19 years — likely insufficient for a full retirement. Depleted means under 10 years. These thresholds are illustrative benchmarks only. Your personal sustainability depends on your health, spending flexibility, pension income, government benefits, and factors this calculator does not model.

Question 6

What does this calculator not include?

Accepted Answer

This calculator does not include: RRIF minimum withdrawal rules (Canada), CPP, OAS, Social Security, or pension income; taxes on withdrawals; investment fees; sequence-of-returns risk (the impact of early poor returns); Monte Carlo simulation; account withdrawal order strategy; or provincial/state-specific rules. Adding income sources like CPP or Social Security would reduce your required portfolio withdrawal and can significantly extend portfolio longevity. Consult a qualified financial advisor for a complete retirement plan.

Question 7

What is the Target Ending Balance?

Accepted Answer

The Target Ending Balance lets you set a minimum portfolio floor — a balance you want to preserve at the end of the simulation (for example, to leave an inheritance or maintain a safety buffer). The calculator stops the simulation when your balance reaches this target. The default is $0, meaning the simulation runs until the portfolio is fully depleted or the 50-year horizon is reached.

Retirement Withdrawal Calculator

Retirement Drawdown Timeline

Withdrawal Sustainability Snapshot

How It Works

Year-by-Year Simulation

First-Year Withdrawal Rate

Deferral Phase

Assumptions

Frequently Asked Questions