Drawdown Calculator

This calculator works out how many years a retirement lump sum will last once you start drawing an income from it, so you can check whether your planned spending is sustainable or whether you are on track to run out of money. You enter your retirement lump sum, the amount you plan to withdraw each year in today's dollars, the expected annual return on your investments, and the rate of inflation. The calculator then steps through the numbers year by year, growing your balance by the expected return and subtracting your withdrawal, which it increases each year with inflation so your spending power stays the same throughout retirement. It returns three results: how long the lump sum lasts, your withdrawal expressed as a percentage rate of the starting balance, and the dollar amount of your first year's withdrawal. If your expected return comfortably covers your withdrawals, the balance can hold steady or keep growing, and the result shows the money lasting indefinitely instead of counting down to zero. Use it to test different withdrawal rates and compare against commonly cited guides such as a 4% rate. It leaves out tax and NZ Super, which is a separate income on top and can let your own savings stretch further, so treat the result as an indicative estimate, not financial advice.

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Withdrawals rise each year with inflation to keep your buying power steady. If the return covers withdrawals, the savings can last indefinitely. This ignores tax and NZ Super, which is a separate income on top. Estimate only, not financial advice.