Inflation Indexed Withdrawal Path
Calculator
Results
- Ending balance
- $1,194,043.65
- Final-year withdrawal
- $73,670.67
- Total withdrawn
- $1,580,497.31
- Years funded
- 30 yr
Portfolio balance path
- Ending balance
- Cumulative withdrawn
Year-by-year portfolio projection
| 1 | 36,000.00 | 51,840.00 | 915,840.00 | 36,000.00 |
| 2 | 36,900.00 | 52,736.40 | 931,676.40 | 72,900.00 |
| 3 | 37,822.50 | 53,631.23 | 947,485.13 | 110,722.50 |
| 4 | 38,768.06 | 54,523.02 | 963,240.10 | 149,490.56 |
| 5 | 39,737.26 | 55,410.17 | 978,913.00 | 189,227.83 |
| 6 | 40,730.70 | 56,290.94 | 994,473.24 | 229,958.52 |
| 7 | 41,748.96 | 57,163.46 | 1,009,887.74 | 271,707.49 |
| 8 | 42,792.69 | 58,025.70 | 1,025,120.75 | 314,500.17 |
| 9 | 43,862.50 | 58,875.49 | 1,040,133.74 | 358,362.68 |
| 10 | 44,959.07 | 59,710.48 | 1,054,885.16 | 403,321.74 |
| 11 | 46,083.04 | 60,528.13 | 1,069,330.24 | 449,404.79 |
| 12 | 47,235.12 | 61,325.71 | 1,083,420.83 | 496,639.91 |
| 13 | 48,416.00 | 62,100.29 | 1,097,105.12 | 545,055.90 |
| 14 | 49,626.40 | 62,848.72 | 1,110,327.45 | 594,682.30 |
| 15 | 50,867.06 | 63,567.62 | 1,123,028.01 | 645,549.36 |
| 16 | 52,138.73 | 64,253.36 | 1,135,142.64 | 697,688.09 |
| 17 | 53,442.20 | 64,902.03 | 1,146,602.46 | 751,130.30 |
| 18 | 54,778.26 | 65,509.45 | 1,157,333.65 | 805,908.55 |
| 19 | 56,147.71 | 66,071.16 | 1,167,257.10 | 862,056.27 |
| 20 | 57,551.41 | 66,582.34 | 1,176,288.03 | 919,607.67 |
| 21 | 58,990.19 | 67,037.87 | 1,184,335.71 | 978,597.87 |
| 22 | 60,464.95 | 67,432.25 | 1,191,303.01 | 1,039,062.81 |
| 23 | 61,976.57 | 67,759.59 | 1,197,086.03 | 1,101,039.38 |
| 24 | 63,525.98 | 68,013.60 | 1,201,573.64 | 1,164,565.37 |
| 25 | 65,114.13 | 68,187.57 | 1,204,647.08 | 1,229,679.50 |
| 26 | 66,741.99 | 68,274.31 | 1,206,179.40 | 1,296,421.49 |
| 27 | 68,410.54 | 68,266.13 | 1,206,034.99 | 1,364,832.03 |
| 28 | 70,120.80 | 68,154.85 | 1,204,069.04 | 1,434,952.83 |
| 29 | 71,873.82 | 67,931.71 | 1,200,126.94 | 1,506,826.65 |
| 30 | 73,670.67 | 67,587.38 | 1,194,043.65 | 1,580,497.31 |
Comparison
| Scenario | Ending balance | Total withdrawn | Final-year withdrawal |
|---|---|---|---|
| Baseline scenario | 2,152,281.67 | 1,080,000.00 | 36,000.00 |
| Selected scenario | 1,194,043.65 | 1,580,497.31 | 73,670.67 |
Formula
Wₜ = W₁ × (1 + i)^(t−1); Bₜ = (Bₜ₋₁ − Wₜ)(1 + r)= 1194043.65
Note
This is not financial advice. It is a simplified model: it applies the displayed formula to the figures you entered, uses a single constant rate for every year unless you supplied more, and ignores taxes, fees, product charges and any country's specific pension, benefit or minimum-distribution rules. Sequence-of-returns risk and longevity risk are real: a run of poor early years can exhaust a portfolio that the average return alone calls safe, and living longer than projected is the risk this page cannot price. Real returns can be negative. Consult a licensed adviser before acting on any figure here.
More in Retirement drawdown
See all →Frequently asked questions
What does 'inflation-indexed' mean for my withdrawals?+
It means your withdrawal amount increases each year by the inflation rate you enter, so your purchasing power stays roughly constant instead of your dollar amount staying flat. A withdrawal that never adjusts for inflation buys noticeably less after 10-15 years.
How sensitive is the result to the inflation rate I choose?+
Very sensitive over long horizons — even a 1-2 percentage point difference in assumed inflation compounds substantially over 20-30 years and can meaningfully change how fast the portfolio depletes. Try the projection with a couple of different inflation assumptions to see the range of outcomes.
Why does my withdrawal amount keep growing even as the balance shrinks?+
Because the withdrawal is indexed to inflation, not to the portfolio's performance — it grows every year regardless of how the investments did. This is realistic for maintaining your lifestyle, but it means a poor market stretch combined with rising withdrawals can accelerate depletion.
Is using a constant historical average inflation rate realistic?+
It's a simplification. Real inflation varies year to year and can spike, as seen in the early 2020s, so a constant rate understates the risk of a high-inflation stretch early in retirement. Use it as a central estimate and consider testing a higher rate as a stress scenario.
How does this differ from a fixed, non-indexed withdrawal plan?+
A fixed plan keeps the dollar withdrawal the same every year, which erodes purchasing power over time but preserves the portfolio longer in nominal terms. An indexed plan preserves your standard of living but depletes faster in real terms if returns don't keep pace with inflation.