The Savings Longevity Calculator from Apollon Wealth Management shows how long will my money last in retirement, given your savings, your first-year withdrawal, an expected return and a yearly inflation raise.
Enter four numbers and read the result. It's an illustration built on steady assumptions, not a forecast, and real markets won't move in a straight line.
How the estimate works, in plain words
The calculator starts with your savings at retirement. Each year the balance earns the return you typed in, then your withdrawal comes out. The next year's withdrawal is the last one raised by your inflation figure, so your spending power stays roughly level.
It keeps going until the balance can't cover a full withdrawal. Then it reports the number of years, the first-year withdrawal rate (withdrawal divided by savings) and the total you took out along the way.
Take a hypothetical owner who sold a company and holds $1,500,000. Assume 5.5 percent a year for illustration, a first withdrawal of $75,000 (5 percent of savings) and a 2.5 percent raise each year. The balance actually grows for the first decade because the return outruns the withdrawals, then slowly shrinks. In the last year the money covers only part of a withdrawal, which is why year 32 shows a smaller figure and a zero balance. Investments can lose money, so a real path would look bumpier than this one.
| Year | Withdrawal | Balance left |
|---|---|---|
| 4 | $80,767 | $1,520,708 |
| 8 | $89,151 | $1,511,321 |
| 12 | $98,406 | $1,461,015 |
| 16 | $108,622 | $1,356,001 |
| 20 | $119,899 | $1,178,784 |
| 24 | $132,346 | $907,225 |
| 28 | $146,085 | $513,394 |
| 32 | $123,380 | $0 |
How to read your result if the company is your nest egg
A result that runs past your late 90s is comfortable on paper. A result under 25 years deserves attention, especially if you're in your early 60s. The example above lasts 32 years, and that sounds fine until you notice the balance falls by more than half in the final eight.
Here's a rule of thumb: run the calculator three times, once with your expected return, once with it lowered by two points, and once with a higher inflation raise. If the middle case still reaches age 95, the plan has room. If it doesn't, the decision to make first is the size of the withdrawal, not the investments.
Business owners should also watch the savings figure itself. If the number you typed assumes a sale price that hasn't been agreed, treat the result as a range until the deal closes and the tax cost of the sale is known.
What the calculator leaves out
It uses one fixed return every year. Real returns arrive unevenly, and a bad first few years hurt far more than the same losses late on, because you're selling while prices are down. It also ignores income tax on withdrawals, Social Security, a pension, and the costs of Medicare premiums, which rise with income.
At Apollon Wealth Management, we treat the plan as a short list of decisions in order of deadline. For an owner that often means the sale or succession date first, then which account pays you first, then when to claim Social Security (full retirement age is 67 for people born in 1960 or later). Each one is made with the numbers in front of you, and before Apollon Wealth Management suggests selling an investment to fund a withdrawal, we estimate the tax cost.
The honest limit: a calculator can't tell you whether your spending is flexible. A plan can, because we ask what you'd cut in a down year and build that in.
Mixing up the withdrawal and the return
Typing a withdrawal as a percent when the box wants dollars is a common slip. Entering 5 instead of $75,000 makes the money seem to last forever. Another is entering a return before fund costs. A 0.5 percent difference on $1,500,000 is $7,500 per year, so use a net figure.
Your questions about Apollon Wealth Management, answered
How accurate is a retirement withdrawal calculator?
It's accurate arithmetic on assumptions that won't hold exactly. Markets don't return the same percentage every year, and spending changes. Use the result as a range by testing a lower return and higher inflation, then treat the weakest case as the one to plan around.
What withdrawal rate is considered safe?
No single rate is safe for everyone. A common rule of thumb is about 4 percent of savings in the first year, raised for inflation, but it depends on your age, mix of investments and flexibility. Try 4, 5 and 6 percent in the calculator and compare the years.
Does the calculator include taxes and Social Security?
No. It treats your withdrawal as the amount you spend and ignores income tax, Social Security and pensions. If you'll collect Social Security later, you can lower the first-year withdrawal to see a rough effect, then ask an advisor to model it properly.
What return should I enter for a retirement estimate?
Enter a modest, net-of-fees figure, and then test one lower. Returns are never certain and investments can lose money, so a number you hope for is a poor input. If the plan only works at a high return, change the withdrawal.
Can I use it before I sell my business?
Yes, but use a savings figure you're confident of after the sale's tax cost, not the asking price. Try a low, middle and high sale value to see how much the outcome depends on the deal.
This content is general information only and does not constitute investment, tax or legal advice tailored to your circumstances. Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. Consult a qualified professional before making any financial or legal decision.