Total US Bond Market: 60-year retirement

Last Update: 28 February 2023

Do you have in mind a 60 years retirement, investing in the Total US Bond Market asset class?

According to the historical returns and stats of the asset class, which has been a sustainable withdrawal rate to live off your investiment?

Worst case scenario so far, over a 60-year time horizon, you could have withdrawn 1.384% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 60 years.

Considering the last 60 years (last update: February 2023), a safe withdrawal rate would have been 2.624%.

The last 60 years of the Total US Bond Market asset class

Over the last 60 years (last update: February 2023), the asset class has returned 5.97% annualized, with a maximum drawdown of -17.28%.

The Withdrawal Rates calculated here are annualized and refer to the initial capital (not the current!). The first month withdrawal is 1/12 of that annualized withdrawal and it's adjusted for inflation for each subsequent month.

A Perpetual Withdrawal Rate (PWR) protected the original inflation adjusted capital.

A Safe Withdrawal Rate (SWR) didn't protect the original capital, but the investment didn't run out of money during retirement. The capital went to zero exaclty at the end of the retirement period.

Learn more about Withdrawal Rate simulation
Swipe left to see all data
Timeframes ending at Feb 2023
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
60 Years 1 Mar 1963
28 Feb 2023 1.827 2.624 5.97
[ 2.01 ]
-17.28
Aug 2020 - Oct 2022
Simulations are calculated with actual returns of Total US Bond Market Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at January 2023

For a complete view of the asset class and all the possible strategies, please refer to Total US Bond Market page.

Withdrawal Rates Simulation (updated at Feb 2023)

How much would it be an acceptable withdrawal rate, for the Total US Bond Market asset class?

Analyzing the available data source, all the 60-years timeframes have been considered to calculate the withdrawal rates and their success percentage.

Legend:
SWR 100% Success
PWR 100% Capital Protection
Period: Jan 1871 - Feb 2023
Swipe left to see all data
PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Minimum
Worst Period (from)
0.629
Oct 1915
0.844
Aug 1939
1.026
Aug 1939
1.207
Aug 1939
1.384
Feb 1941
1.534
95% Succ.
1.614
90% Succ.
2.077
80% Succ.
2.450
50% Succ.
Median 1.390
1.690
1.963
2.236
2.450
Average 1.701
1.945
2.188
2.432
2.676
Maximum
Best Period (from)
5.749
Mar 1873
5.890
Mar 1873
6.032
Mar 1873
6.175
Feb 1873
6.321
Feb 1873
Swipe left to see all data
Key
Withdrawal
Rates (%)
Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.629
0.713
0.760
0.948
1.390
75% 0.844
0.935
1.008
1.195
1.690
50% 1.026
1.134
1.225
1.468
1.963
25% 1.207
1.336
1.418
1.777
2.236
0% 1.384
1.534
1.614
2.077
2.450
Period: Mar 1923 - Feb 2023
Swipe left to see all data
PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Minimum
Worst Period (from)
0.663
Aug 1939
0.844
Aug 1939
1.026
Aug 1939
1.207
Aug 1939
1.384
Feb 1941
1.434
95% Succ.
1.524
90% Succ.
1.591
80% Succ.
2.263
50% Succ.
Median 1.410
1.689
1.910
2.081
2.263
Average 1.376
1.572
1.768
1.963
2.159
Maximum
Best Period (from)
2.291
Oct 1959
2.439
Oct 1959
2.586
Oct 1959
2.733
Oct 1959
2.952
Nov 1923
Swipe left to see all data
Key
Withdrawal
Rates (%)
Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.663
0.703
0.722
0.796
1.410
75% 0.844
0.902
0.929
0.992
1.689
50% 1.026
1.079
1.130
1.192
1.910
25% 1.207
1.251
1.330
1.393
2.081
0% 1.384
1.434
1.524
1.591
2.263
Simulations are calculated with actual returns of Total US Bond Market Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at January 2023

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the Total US Bond Market asset class, over 60 years, which would have been the success rate so far?

Simulations follow the same rules mentioned before. Withdrawals are expressed as yearly rates and refer to the initial capital. After that, withdrawal amount is monthly adjusted for inflation.

Success rates are calculated over all 60-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Feb 2023
Swipe left to see all data
Withdrawal
Rate
60 Years
% Fail
% Success over 60 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved
0%
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
82.57
80% Succ.
2.077%
17.43
82.57
61.88
48.24
35.14
24.48
2.50 %
46.61
53.39
46.61
31.53
21.23
16.44
15.27
3.00 %
22.49
77.51
22.49
17.25
15.36
13.28
11.92
3.50 %
15.27
84.73
15.27
12.83
10.30
8.94
7.14
4.00 %
9.94
90.06
9.94
7.14
6.68
6.14
5.69
4.50 %
6.05
93.95
6.05
5.60
5.15
4.70
4.43
5.00 %
4.70
95.30
4.70
4.34
3.88
3.16
2.80
5.50 %
3.25
96.75
3.25
2.71
2.17
1.45
0.63
6.00 %
1.26
98.74
1.26
0.45
0.18
0.00
0.00
6.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
7.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
7.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
8.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Mar 1923 - Feb 2023
Swipe left to see all data
Withdrawal
Rate
60 Years
% Fail
% Success over 60 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved
0%
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
61.54
50% Succ.
2.263%
38.46
61.54
54.68
43.45
24.53
11.85
2.50 %
35.34
64.66
35.34
9.98
1.66
0.00
0.00
3.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
3.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
4.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
4.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
5.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
5.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
6.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
6.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
7.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
7.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
8.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of Total US Bond Market Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at January 2023

Related Pages

Asset Class Main Page:
Total US Bond Market Asset Class

For the Total US Bond Market Asset Class, we have prepared a report for each available timeframe:
20-Year    30-Year    40-Year    50-Year    60-Year    70-Year   

if you want to learn more about the statistics of a specific withdrawal rate, we suggest these in particular:
2%    2.5%    3%    3.5%    4%    4.5%    5%   

Website Homepage:
BestRetirementPortfolio.com

Share this page