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Retirement

What you need, and how long it lasts

Set a retirement target, then carry that same number through saving and drawing it down. Compound interest and the 4% rule sit alongside, so the assumptions stay in one place.

If the target and the drawdown are worked out separately the numbers stop agreeing, so what comes out of the saving stage is carried into the withdrawal stage. Amounts are in Korean won, but the arithmetic is the same wherever you are — put your own pension and inflation figures in and the answer holds.

In order, it goes like this

  • 1. Decide how much you need

    Enter the yearly spending you want and the age you want to stop working, and you get the lump sum it takes. Every later step starts from that number.

  • 2. See what that is per month

    With the target and the years left, you get the monthly amount. Lower the return and you can see how much tighter it gets.

  • 3. See how long it lasts once you spend it

    Draw the money down month by month and see when it runs out. The point is to carry the lump sum from step 2 straight into this one.

  • 4. Check what it survives

    Lower the return by two points, raise inflation by one, and run the drawdown again. A plan that only works at the numbers you first typed is not a plan yet.

Which one you want

Tools in Retirement

8 tools

Common questions

Is inflation taken into account?

Each calculator takes an inflation rate of your own. Enter one and the result is also shown in today's money, so you can see what a sum thirty years out is worth now.

Does the 4% rule hold everywhere?

It was built from past US stock and bond returns, so it does not carry over cleanly to other markets. The calculator lets you change the withdrawal rate directly — seeing what 3% demands instead is the more useful thing to do with it.

Why are the amounts in Korean won?

Converting them would need an exchange rate and a date, and it would be wrong the day after. The arithmetic does not care about the symbol: put your own figures in and the ratios, the years and the shortfalls all read the same.

Are the numbers I type stored anywhere?

There is no server. Everything is worked out in the browser and nothing is uploaded. If you want to keep a result you can make a share link, and then the values ride inside the address.

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