Retirement Income and Senior Insurance Solutions

Table 3: Portfolio Success Rate: Percentage of all Past Payout Periods From 1926 to 1995 that are Supported by the Portfolio After Adjusting Withdrawals for Inflation and Deflation

Note: Numbers in the table are rounded to the nearest whole percentage. The number of overlapping 15-year payout periods from 1926 to 1995, inclusively, is 56; 20-year periods, 51; 25-year periods, 46; 30-year periods, 41. Stocks are represented by Standard and Poor's 500 Index, bonds are represented by long-term, high-grade corporates, and inflation (deflation) rates are based on the Consumer Price Index (CPI).
Data source: Calculations based on data from Ibbotson Associates.

Portfolio Composition/ Payout Period	Withdrawal Rate as a % of Initial Portfolio Value
Portfolio Composition/ Payout Period	3	4	5	6	7	8	9	10	11	12
100% Stocks
15 Years	100	100	100	91	79	70	63	55	43	34
20 Years	100	100	88	75	63	53	43	33	29	24
25 Years	100	100	87	70	59	46	35	30	26	20
30 Years	100	95	85	68	59	41	34	34	27	15
75% Stocks-25% Bonds
15 Years	100	100	100	95	82	68	64	46	36	27
20 Years	100	100	90	75	61	51	37	27	20	12
25 Years	100	100	85	65	50	37	30	22	7	2
30 Years	100	98	83	68	49	34	22	7	2	0
50% Stocks-50% Bonds
15 Years	100	100	100	93	79	64	50	32	23	13
20 Years	100	100	90	75	55	33	22	10	0	0
25 Years	100	100	80	57	37	20	7	0	0	0
30 Years	100	95	76	51	17	5	0	0	0	0
25% Stocks-75% Bonds
15 Years	100	100	100	89	70	50	32	18	13	7
20 Years	100	100	82	47	31	16	8	4	0	0
25 Years	100	93	48	24	15	4	2	0	0	0
30 Years	100	71	27	20	5	0	0	0	0	0
100% Bonds
15 Years	100	100	100	71	39	21	18	16	14	9
20 Years	100	90	47	20	14	12	10	2	0	0
25 Years	100	46	17	15	11	2	0	0	0	0
30 Years	80	20	17	12	0	0	0	0	0	0