Finance & Money
Retirement Income Longevity Calculator
Subtract pension and other reliable income, convert nominal return and inflation into a real-rate approximation, and cap the displayed duration at the planning horizon.
First-year portfolio draw-
Approximate real return-
First-year monthly portfolio draw-
Approximate portfolio longevity-
Approximate portfolio longevity-
Portfolio as multiple of first-year draw-
Initial portfolio draw rate-
Decision view
Retirement portfolio longevity gauge
Retirement portfolio longevity gaugeReliable income reduces the portfolio-funded draw before longevity is estimated.
Exact scenario comparisonAnnual spending need changes while all other entered assumptions remain constant.
| Annual spending need | First-year portfolio draw | Approximate real return | First-year monthly portfolio draw | Approximate portfolio longevity | Approximate portfolio longevity | Portfolio as multiple of first-year draw | Initial portfolio draw rate |
|---|
How to use Retirement Income Longevity Calculator
- Separate reliable income from portfolio withdrawals.
- Use a realistic spending gap.
- Run adverse return, inflation, and longevity cases.
Calculator guide
Understanding Retirement Income Longevity Calculator
Portfolio longevity starts with the spending gap after reliable income, then estimates how long the portfolio could fund that gap under a constant real return.
Calculation method
How the calculation works
Subtract reliable annual income from spending, estimate real return after inflation, and model how long the portfolio can fund the remaining first-year draw. Calculate first-year net draw, convert it to monthly cash, derive real return, and solve the level-real-withdrawal payoff duration.
Longevity stress
Test the assumptions that shorten funding life
The central estimate should be surrounded by adverse cases.
Worked situations
Practical examples
- Higher pension income reduces portfolio draw.
- Inflation lowers real return.
- The maximum horizon caps display rather than guaranteeing survival.
Better inputs
Useful tips
- Use stochastic planning for major decisions.
- Include taxes and fees in a professional model.
- Review spending flexibility.
Before relying on the result
Limitations and common mistakes
- Constant real return omits sequence risk and volatility.
- Taxes, fees, benefit changes, spending changes, required distributions, and longevity uncertainty are excluded.
- The result is not a success probability.
Reference
Key terms
- Spending gap
- Annual spending minus reliable annual income.
- Real return
- Return after the modeled effect of inflation.
- Portfolio longevity
- Approximate duration funded by constant real draw.
- Coverage ratio
- Portfolio divided by first-year net draw.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Is modeled longevity a guarantee?
No.
What if pension covers all spending?
The modeled portfolio draw becomes zero.
Does it simulate markets?
No.
Are taxes included?
No.