Home
Back
Retirement Savings Duration Formula:
| From: | To: |
The retirement savings duration formula estimates how long your retirement savings will last based on your initial balance and annual withdrawal amount. It provides a simple calculation to help plan your retirement finances.
The calculator uses the formula:
Where:
Explanation: This formula calculates how many years your retirement savings will last by dividing your initial balance by your annual withdrawal amount.
Details: Proper retirement planning is essential to ensure your savings last throughout your retirement years. Understanding how long your money will last helps you make informed decisions about withdrawal rates and lifestyle adjustments.
Tips: Enter your initial retirement balance in CAD and your planned annual withdrawal amount in CAD. Both values must be positive numbers.
Q1: Does this calculation account for investment returns?
A: No, this is a simple calculation that assumes no investment returns or inflation. For more accurate planning, consider consulting a financial advisor.
Q2: What is a safe withdrawal rate?
A: The 4% rule is a common guideline, suggesting you can withdraw 4% of your initial retirement portfolio each year with adjustments for inflation.
Q3: How does inflation affect retirement savings?
A: Inflation reduces purchasing power over time, meaning you may need to withdraw more money each year to maintain the same standard of living.
Q4: Should I include government pensions in this calculation?
A: This calculator focuses on your personal retirement savings. Government pensions and other income sources should be considered separately in your overall retirement plan.
Q5: How accurate is this simple calculation?
A: While useful for basic estimation, actual retirement duration can vary significantly based on investment returns, inflation, spending patterns, and unexpected expenses.