Why this matters
The assumption changes the projection.
Spending determines the income the portfolio is expected to replace. Because required portfolio is based on annual spending, this input has a direct relationship with the target pot.
Year effect
The year moves when the model input moves.
Higher spending raises the required portfolio and can move the projected financial independence year later. Lower spending lowers the target and can move the projected year earlier.
Model assumption
The calculator keeps the assumption deliberately simple.
Undefeated treats monthly spending as a steady monthly amount in today’s money. The model annualises it before calculating the target portfolio.
Model limits
The real world may not match the model input.
Housing, dependants, healthcare, lifestyle, one-off costs, or retirement spending differ from the monthly amount entered into the calculator.