The portfolio value grows annually based on the net return, which is calculated as Investment Return minus Management Fees. The calculation assumes annual compounding.
During the saving phase (from current age until retirement age), the annual savings amount is added to the portfolio at the end of each year, after applying the growth.
Starting from retirement age, the annual withdrawal amount is subtracted from the portfolio at the end of each year, after applying the growth.
Pension income is added to the portfolio starting from the pension start age. This is independent of the retirement age, allowing modeling of situations where retirement occurs before pension payments begin.
The depletion age is calculated when the portfolio value reaches zero. If the portfolio remains positive until age 100, it is considered sufficient for the simulation period.
All returns are expressed in real terms (after inflation). This means the portfolio values shown represent purchasing power, not nominal amounts.
Returns are compounded annually. All transactions (savings, withdrawals, pension) occur at the end of each year.
All input parameters (returns, fees, savings, withdrawals, pension) remain constant throughout the simulation period. This is a simplification for modeling purposes.
The simulation does not account for taxes on investment returns, withdrawals, or pension income. Actual results may vary based on individual tax situations.
Note: This simulation uses simplified assumptions and should not be considered as financial advice. Real-world scenarios may differ significantly due to market volatility, tax implications, and other factors.