How should I set the inflation rate and investment return rate?

The long-term average inflation rate in Taiwan is about 2%. Investment return depends on asset allocation: conservative (bond-focused) about 3-4%, balanced about 4-6%, aggressive (stock-focused) can reach 6-8%. It is recommended to set according to your risk tolerance.

Is the prediction accurate?

This tool provides a simplified model. Actual situations will be affected by health status, medical expenses, lifestyle changes, and other factors. It is recommended to treat the results as a reference and consult a professional financial advisor to develop a complete retirement plan.

What if my retirement funds will run out?

Consider: 1. Increase income: part-time work after retirement, rent out properties; 2. Reduce expenses: cut non-essential spending; 3. Financial planning: adopt conservative allocation or purchase annuity insurance; 4. Delay retirement or lower post-retirement living standards. The scenario simulation in the tool can help you evaluate the effects of different options.

How much should I reserve for long-term care?

According to statistics, Taiwanese people need long-term care for about 7-10 years on average. Hiring a foreign caregiver costs about NT$30,000-40,000 per month; using domestic caregivers or institutional care costs more. It is recommended to reserve at least NT$3-5 million for long-term care.

Free Tools Website

Retirement Burn Rate Calculator

Q: What is retirement burn rate?

Burn rate refers to the rate at which retirement funds are withdrawn at a fixed (or inflation-adjusted) rate. Through visualization curves, you can clearly see the depletion speed of assets and predict when they will run out, helping you adjust your retirement plan early.

Visualize your retirement asset depletion curve and predict when your retirement funds will run out to help you plan ahead.

Home

›
Elder Care Tools
›
Retirement Burn Rate Calculator

Retirement Burn Rate Calculator

Enter your age, retirement savings, monthly expenses, and other information to predict how long your retirement funds will last, along with coping strategy recommendations.

Basic Information

Current Age *

Retirement Age *

Life Expectancy *

Financial Information

Total Retirement Savings *

Include all assets: bank deposits, stocks, investment accounts, retirement funds

Monthly Expenses *

Include all expenses: living costs, medical, entertainment, etc.

Financial Assumptions

Inflation Rate: 2%

0%2%5%2%Long-term average inflation rate in Taiwan is about 2%

Annual Investment Return Rate: 4%

0%4%10%4%Conservative allocation: 3-4%, aggressive allocation: 6-8%

Related Tools

SARC-F Sarcopenia Risk Calculator

Assess sarcopenia risk quickly through SARC-F scale and calf circumference measurement.

AD8 Dementia Screening Tool

Quick dementia screening using the internationally validated AD8 scale to help families assess cognitive changes.

Sleep Time Calculator

Accurately calculate the best sleep and wake-up times.

Pace Calculator

Calculate running or cycling race paces with detailed recommendations.

RM Calculator

A tool for athletes to calculate their one-rep max.

Chronic Prescription Calculator

Enter your visit date and interval to determine the next prescription refill date.

Why Predict Retirement Burn Rate?

Many people have retirement savings but are unclear about 'how many years it will last'. The retirement burn rate prediction tool uses visual charts to help you clearly understand the depletion speed of assets and predict the age at which retirement funds will run out, allowing you to plan financially early and avoid financial difficulties in later years.

What is Retirement Burn Rate?

Burn Rate originally a startup term, refers to the rate at which a company consumes cash. Applied to retirement planning, it refers to the process of withdrawing retirement funds at a fixed (or inflation-adjusted) rate until assets are depleted. This tool considers inflation and investment returns to simulate realistic asset change curves, more accurate than simple 'total ÷ years'.

How to Use This Tool?

Very simple to use: 1. Enter your age, retirement age, and life expectancy; 2. Fill in total retirement savings (including deposits, stocks, retirement accounts, and all assets) and expected monthly expenses; 3. Adjust inflation rate (about 2% in Taiwan) and investment return rate (conservative 3-4%, aggressive 6-8%); 4. Click calculate to see the asset depletion curve, depletion age, and coping strategy recommendations. The tool also provides scenario simulation to help you evaluate the effects of different strategies.

How to Extend Retirement Fund Duration?

If prediction results show retirement funds will run out early, consider the following strategies: 1. Increase income: part-time work after retirement (consulting, teaching, etc.), rent out idle properties, plan for labor insurance and national pension; 2. Reduce expenses: cut non-essential spending (entertainment, travel, etc.), apply for government senior welfare (senior card, health insurance subsidies); 3. Financial planning: adopt conservative investment allocation (60% bonds + 40% stocks), consider purchasing annuity insurance to ensure lifetime income; 4. Long-term care preparation: reserve long-term care funds (about NT$3-5 million), understand Long-term Care 2.0 subsidy resources.

Frequently Asked Questions

Why is the inflation rate important?: Suppose you currently spend NT$30,000 per month, with a 2% inflation rate, the same living standard will require about NT$36,000 in 10 years and about NT$44,000 in 20 years. If inflation is not considered in calculations, the required retirement funds will be seriously underestimated. This tool automatically includes inflation factors in calculations.
How to estimate the investment return rate?: Investment return depends on your asset allocation. Conservative (bond and deposit-focused) about 3-4%; balanced (half stocks and bonds) about 4-6%; aggressive (stock-focused) can reach 6-8%. After retirement, a more conservative allocation is usually recommended to avoid market volatility affecting life. You can adjust the slider to try different scenarios.
What if the forecast results are not as expected?: If you find retirement funds might run out, don't panic. Consider: delaying retirement age (working a few more years), lowering post-retirement living standards, increasing savings, adopting a more aggressive investment strategy, or planning post-retirement income sources (part-time work, property rental, etc.). The scenario simulation in the tool can help you evaluate the effects of various options.
How much retirement savings is enough?: Generally recommended that retirement savings should be at least '10-15 times pre-retirement annual salary'. For example, if annual salary before retirement is NT$600,000, retirement savings should be NT$6-9 million. But actual needs vary by person, depending on post-retirement lifestyle, health status, whether there is a mortgage, etc. Using this tool can help you estimate personalized needs.
How to estimate long-term care costs?: According to statistics, Taiwanese people need long-term care for about 7-10 years on average. Hiring a foreign caregiver costs about NT$30,000-40,000 per month; using domestic caregivers or institutional care costs more (over NT$50,000-80,000 per month). Conservative estimate should reserve at least NT$3-5 million for long-term care. The government's Long-term Care 2.0 provides partial subsidies, but there are still out-of-pocket expenses.

About Us