US Intermediate Term (3-7y) Treasuries: 20-year retirement

Last Update: 30 November 2023

Do you have in mind a 20 years retirement, investing in the US Intermediate Term (3-7y) Treasuries 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Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 3.652% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.

Considering the last 20 years (last update: November 2023), a safe withdrawal rate would have been 5.77%.

The last 20 years of the US Intermediate Term (3-7y) Treasuries asset class

Over the last 20 years (last update: November 2023), the asset class has returned 2.72% annualized, with a maximum drawdown of -13.59%.

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
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Timeframes ending at Nov 2023
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
20 Years 1 Dec 2003
30 Nov 2023 0.140 5.770 2.72
[ 0.12 ]
-13.59
Aug 2020 - Oct 2022
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2023

For a complete view of the asset class and all the possible strategies, please refer to US Intermediate Term (3-7y) Treasuries page.

Withdrawal Rates Simulation (updated at Nov 2023)

How much would it be an acceptable withdrawal rate, for the US Intermediate Term (3-7y) Treasuries asset class?

Analyzing the available data source, all the 20-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 - Nov 2023
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
May 1897
0.000
Jan 1899
0.933
Aug 1939
2.364
Aug 1939
3.652
Feb 1941
95%
0.000
0.129
1.616
2.953
4.144
90%
0.000
0.446
1.806
3.303
4.597
80%
0.003
1.256
2.467
3.654
4.817
50%
Median WR
2.091
2.927
3.854
4.823
5.886
Period: Dec 1923 - Nov 2023
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
Apr 1932
0.000
Sep 1938
0.933
Aug 1939
2.364
Aug 1939
3.652
Feb 1941
95%
0.000
0.059
1.513
2.819
4.015
90%
0.000
0.341
1.725
2.978
4.234
80%
0.000
0.700
2.178
3.498
4.730
50%
Median WR
1.569
2.526
3.524
4.444
5.612
Period: Dec 1973 - Nov 2023
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
Jul 2003
1.399
Oct 2003
2.816
Jul 2003
4.217
Jun 2003
5.466
Dec 1973
95%
1.059
2.370
3.681
4.843
5.886
90%
2.218
3.309
4.307
5.278
6.140
80%
2.928
3.839
4.725
5.540
6.385
50%
Median WR
3.854
4.708
5.578
6.412
7.286
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2023

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Intermediate Term (3-7y) Treasuries asset class, over 20 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 20-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Nov 2023
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Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
100.00
86.40
63.72
52.32
2.50 %
100.00
0.00
98.37
79.26
56.27
42.73
3.00 %
100.00
0.00
93.48
65.91
49.50
36.65
3.50 %
100.00
100% Succ.
3.652%
0.00
85.59
53.45
44.11
30.45
4.00 %
97.24
95% Succ.
4.144%
2.76
68.11
48.56
36.40
25.88
4.50 %
92.23
90% Succ.
4.597%
7.77
52.19
44.74
29.26
18.61
5.00 %
71.99
28.01
48.68
36.03
24.62
13.28
5.50 %
54.76
50% Succ.
5.886%
45.24
44.42
28.51
16.42
10.96
6.00 %
49.25
50.75
36.28
22.93
12.47
9.02
6.50 %
43.42
56.58
28.20
14.35
9.84
6.58
7.00 %
36.22
63.78
20.99
11.34
7.77
4.51
7.50 %
27.57
72.43
13.22
8.46
5.33
2.94
8.00 %
19.30
80.70
10.15
6.08
3.57
1.63
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Dec 1923 - Nov 2023
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Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
100.00
81.06
57.96
47.35
2.50 %
100.00
0.00
97.29
73.57
50.57
39.02
3.00 %
100.00
0.00
89.18
61.60
45.89
33.51
3.50 %
100.00
100% Succ.
3.652%
0.00
79.81
50.26
40.89
25.81
4.00 %
95.42
95% Succ.
4.015%
4.58
65.24
44.54
33.19
19.46
4.50 %
87.83
80% Succ.
4.730%
12.17
49.12
41.21
24.25
13.01
5.00 %
70.45
29.55
44.43
32.47
18.52
8.01
5.50 %
53.07
50% Succ.
5.612%
46.93
39.96
23.62
10.30
6.76
6.00 %
45.37
54.63
32.67
16.75
7.39
5.31
6.50 %
38.29
61.71
24.45
8.53
6.04
3.33
7.00 %
32.26
67.74
14.98
6.66
4.37
2.08
7.50 %
24.04
75.96
7.60
4.89
2.50
0.94
8.00 %
13.84
86.16
5.93
3.33
1.66
0.31
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Dec 1973 - Nov 2023
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Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
100.00
100.00
95.57
91.97
2.50 %
100.00
0.00
100.00
100.00
94.46
86.43
3.00 %
100.00
0.00
100.00
97.51
92.52
78.12
3.50 %
100.00
0.00
100.00
95.29
86.70
59.00
4.00 %
100.00
0.00
100.00
93.07
74.79
45.15
4.50 %
100.00
0.00
96.12
87.26
54.29
34.63
5.00 %
100.00
100% Succ.
5.466%
0.00
93.35
66.48
42.38
21.33
5.50 %
99.72
95% Succ.
5.886%
0.28
82.83
51.80
27.42
18.01
6.00 %
92.80
90% Succ.
6.140%
7.20
64.82
37.95
19.67
14.13
6.50 %
77.01
22.99
47.09
22.71
16.07
8.86
7.00 %
62.33
50% Succ.
7.286%
37.67
32.41
17.73
11.63
5.54
7.50 %
42.11
57.89
20.22
13.02
6.65
2.49
8.00 %
25.21
74.79
15.79
8.86
4.43
0.83
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2023

Related Pages

Asset Class Main Page:
US Intermediate Term (3-7y) Treasuries Asset Class

For the US Intermediate Term (3-7y) Treasuries 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%   

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