SUSTAINABLE WITHDRAWAL RATE CALCULATOR

Our sustainable withdrawal calculator is based on a stochastic model developed by global actuarial firm, Milliman.

What will the calculator show you?

It shows the probability of a given level of income, inflation linked or level, lasting for a fixed period based on a mix of equities, bonds and cash. The proportions held in each asset are decided by you and your client. There is also a cap of 10% on the level of income that can be taken.

In addition to the sustainability of income percentage, the calculator will also show the average death benefit, after allowing for inflation, at the end of the selected term.

The calculator then goes further than this. It applies the money invested in bonds to buy an annuity, based on your client’s health and age, and contrasts the impact of this with the original results. The switch can increase the likelihood of your client’s income lasting the term and improves the average death benefit at the end of the selected period. 

To discover more about the analysis you can download the Milliman report here.