Retirement Showdown
Two retirement plans, one question: which holds up better? Work out which one is under more strain, then see how it plays out.
Frequently asked questions
How much can I take from my retirement savings each year?
It depends on your situation. Many planners use about 4% of the pot in the first year, rising with prices, as a cautious starting point. A higher rate can make the money run out far sooner.
Is a bigger pot always safer?
No. What matters is the share of the pot you spend each year. A large pot with high spending can run out before a smaller pot with modest spending.
What is sequence-of-returns risk?
When you are spending from a pot, a market fall early on forces you to sell more at low prices, and that damage cannot be undone later. The same returns in a different order can leave very different results.
Is it better to retire earlier or later?
Working longer adds savings and shortens retirement, which is powerful. But a much bigger lifestyle to fund can cancel the benefit. Compare the spending against the pot, not just the age.
Should I always take my employer's match?
Yes, it is part of your pay that you only get if you save. But look at the total going in: a bigger saving of your own can beat a small saving with a small match.
Is this financial advice?
No. It is an illustrative learning game that uses simplified, fixed assumptions. It is not a forecast, and real returns and prices vary.