May 8, 1999
This table illustrates how much of ones needs per year comes from income. It is based on the planned number of years in retirement with a 7.5% return and 2.5% inflation. The rest of ones needs should come from principal, savings, reverse mortgage of home, etc. This chart is based on the gradient formula. Based on how long you think you will live past retirement, one simple looks at what year of retirement one is in and goes across the column to the appropriate years planned to be in retirement to determine what percent of your needs should come from income in that year.
For example a person who thinks they will live 13 years past retirement and is in their tenth year of retirement would expect to have 75% of ones needs come from principal and 25% from income generated from that principal.
| Years Planned to be in Retirement | ||||||||||||
| age | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
| year | percent of ones needs from income | |||||||||||
| 1 | 67% | 70% | 74% | 77% | 81% | 84% | 87% | 90% | 92% | 95% | 98% | 100% |
| 2 | 63% | 67% | 70% | 74% | 77% | 81% | 84% | 87% | 90% | 92% | 95% | 98% |
| 3 | 59% | 63% | 67% | 70% | 74% | 77% | 81% | 84% | 87% | 90% | 92% | 95% |
| 4 | 54% | 59% | 63% | 67% | 70% | 74% | 77% | 81% | 84% | 87% | 90% | 92% |
| 5 | 50% | 54% | 59% | 63% | 67% | 70% | 74% | 77% | 81% | 84% | 87% | 90% |
| 6 | 45% | 50% | 54% | 59% | 63% | 67% | 70% | 74% | 77% | 81% | 84% | 87% |
| 7 | 40% | 45% | 50% | 54% | 59% | 63% | 67% | 70% | 74% | 77% | 81% | 84% |
| 8 | 35% | 40% | 45% | 50% | 54% | 59% | 63% | 67% | 70% | 74% | 77% | 81% |
| 9 | 30% | 35% | 40% | 45% | 50% | 54% | 59% | 63% | 67% | 70% | 74% | 77% |
| 10 | 25% | 30% | 35% | 40% | 45% | 50% | 54% | 59% | 63% | 67% | 70% | 74% |
| 11 | 19% | 25% | 30% | 35% | 40% | 45% | 50% | 54% | 59% | 63% | 67% | 70% |
| 12 | 13% | 19% | 25% | 30% | 35% | 40% | 45% | 50% | 54% | 59% | 63% | 67% |
| 13 | 7% | 13% | 19% | 25% | 30% | 35% | 40% | 45% | 50% | 54% | 59% | 63% |
| 14 | 0% | 7% | 13% | 19% | 25% | 30% | 35% | 40% | 45% | 50% | 54% | 59% |
| 15 | 0% | 0% | 7% | 13% | 19% | 25% | 30% | 35% | 40% | 45% | 50% | 54% |
| 16 | 0% | 0% | 0% | 7% | 13% | 19% | 25% | 30% | 35% | 40% | 45% | 50% |
| 17 | 0% | 0% | 0% | 0% | 7% | 13% | 19% | 25% | 30% | 35% | 40% | 45% |
| 18 | 0% | 0% | 0% | 0% | 0% | 7% | 13% | 19% | 25% | 30% | 35% | 40% |
| 19 | 0% | 0% | 0% | 0% | 0% | 0% | 7% | 13% | 19% | 25% | 30% | 35% |
| 20 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 7% | 13% | 19% | 25% | 30% |
| 21 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 7% | 13% | 19% | 25% |
| 22 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 7% | 13% | 19% |
| 23 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 7% | 13% |
| 24 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 7% |
| 25 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
