Why this matters
What this means.
Withdrawal rate connects spending to the portfolio number being tested. In Undefeated, changing this assumption can move the Financial Independence Year because it changes the size of the pot being tested.
Year impact
How this can move the year.
A lower withdrawal rate raises the target portfolio and can move the Financial Independence Year later. A higher withdrawal rate lowers the target and can move the year earlier.
How it is used
How the calculation uses it.
The calculation uses the entered withdrawal rate as a stable planning assumption. Undefeated does not choose a withdrawal rate, model changing withdrawal patterns, or include tax treatment, sequence risk, or spending changes after the Financial Independence Year.
Estimate limits
What can make the estimate change.
The estimate may change if actual spending, tax position, investment returns, inflation, pension access, cash needs, or withdrawal behaviour differ from the assumption entered.