The long term impact of withdrawal rates on super and savings

The difference between withdrawing $50,000 and $40,000 from a portfolio worth $1 million may seem small, but over time it can have a large impact on how soon the money runs out.

The chart below shows the effects of small changes in withdrawal rates for a $1 million portfolio over the 30 years period staring December 31, 1972, which was right before a big decline in the market.

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Sources: BlackRock