Different withdrawal rates have varying levels of impact on how long your retirement assets can last.
35% Equity / 65% Fixed Income Portfolio at Various Withdrawal Rates
(Value of portfolio at year of retirement = HK$1 million)
Years of sustainable withdrawals
Source: Graphs are for illustrative purposes only and must not be relied upon to make investment decisions. The yearly withdrawal amount is set as a fixed percentage of the initial portfolio and is then inflation adjusted over the period. J.P. Morgan's model is based on J.P. Morgan Asset Management's (JPMAM) proprietary long-term capital market assumptions (10-15 years). Equity represents AC World Equity and fixed income Global Aggregate Hedged. Each graph represents the 50th percentile of 10,000 individual series 30 years in length. Given the complex risk/reward trade-offs involved, we advise clients to rely on judgement as well as quantitative optimisation approaches in setting strategic allocations. References to future returns for either asset allocation strategies or asset classes are not promises or even estimates of actual returns a client portfolio may achieve.
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