US Treasuries (7-10y): 40-year retirement

Last Update: 30 November 2023

Do you have in mind a 40 years retirement, investing in the US Treasuries (7-10y) 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Worst case scenario so far, over a 40-year time horizon, you could have withdrawn 1.737% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 40 years.

Considering the last 40 years (last update: November 2023), a safe withdrawal rate would have been 7.08%.

The last 40 years of the US Treasuries (7-10y) asset class

Over the last 40 years (last update: November 2023), the asset class has returned 6.66% annualized, with a maximum drawdown of -23.18%.

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(%)
40 Years 1 Dec 1983
 30 Nov 2023 5.445 7.080 6.66
[ 3.73 ] 		-23.18
Aug 2020 - Oct 2023
Simulations are calculated with actual returns of US Treasuries (7-10y) 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 Treasuries (7-10y) page.

Withdrawal Rates Simulation (updated at Nov 2023)

How much would it be an acceptable withdrawal rate, for the US Treasuries (7-10y) asset class?

Analyzing the available data source, all the 40-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
Jan 1933 		0.000
May 1938 		0.000
Apr 1940 		0.748
Sep 1941 		1.737
May 1941
95%
 0.000
 0.000
 0.604
 1.268
 1.926
90%
 0.000
 0.245
 0.881
 1.540
 2.203
80%
 0.833
 1.352
 1.815
 2.201
 2.562
50%
Median WR 		1.551
 2.016
 2.445
 2.764
 3.116
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
Jan 1933 		0.000
May 1938 		0.000
Apr 1940 		0.748
Sep 1941 		1.737
May 1941
95%
 0.000
 0.000
 0.378
 1.120
 1.859
90%
 0.000
 0.000
 0.623
 1.293
 1.931
80%
 0.000
 0.375
 1.001
 1.601
 2.212
50%
Median WR 		1.603
 2.038
 2.399
 2.729
 2.970
Simulations are calculated with actual returns of US Treasuries (7-10y) 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 Treasuries (7-10y) asset class, over 40 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 40-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 40 Years
% Fail
% Success over 40 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 %
93.14
90% Succ.
2.203% 		6.86
85.03
65.12
50.52
37.98
2.50 %
81.71
80% Succ.
2.562% 		18.29
61.21
46.90
32.15
24.63
3.00 %
55.09
50% Succ.
3.116% 		44.91
40.71
30.75
22.86
17.04
3.50 %
39.01
60.99
29.42
22.64
17.40
14.68
4.00 %
28.54
71.46
22.49
17.11
12.17
10.69
4.50 %
21.09
78.91
16.00
11.87
10.10
8.78
5.00 %
17.48
82.52
12.09
9.96
8.11
7.15
5.50 %
11.95
88.05
9.44
7.67
6.71
5.09
6.00 %
9.51
90.49
7.45
6.05
4.06
2.58
6.50 %
6.71
93.29
5.09
3.47
2.14
1.70
7.00 %
4.13
95.87
2.58
1.70
1.33
0.96
7.50 %
1.77
98.23
1.33
1.18
0.66
0.29
8.00 %
1.25
98.75
0.81
0.29
0.15
0.15
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 40 Years
% Fail
% Success over 40 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 %
87.10
80% Succ.
2.212% 		12.90
71.84
61.58
50.62
39.81
2.50 %
70.04
50% Succ.
2.970% 		29.96
57.70
44.38
27.88
24.83
3.00 %
46.74
53.26
33.98
25.24
19.97
17.61
3.50 %
32.18
67.82
22.33
16.64
16.09
14.98
4.00 %
20.39
79.61
15.67
14.15
9.99
9.29
4.50 %
12.62
87.38
9.85
9.29
8.46
7.77
5.00 %
9.29
90.71
8.46
7.77
7.21
6.93
5.50 %
7.63
92.37
7.07
6.93
6.66
4.85
6.00 %
6.93
93.07
6.93
5.83
4.44
3.74
6.50 %
6.38
93.62
4.85
3.88
3.61
3.19
7.00 %
4.58
95.42
3.61
3.19
2.50
1.80
7.50 %
3.19
96.81
2.50
2.22
1.25
0.55
8.00 %
2.36
97.64
1.53
0.55
0.28
0.28
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of US Treasuries (7-10y) 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 Treasuries (7-10y) Asset Class

For the US Treasuries (7-10y) 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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