Rich, Broke or Dead? Post-Retirement FIRE Calculator

The “Rich, Broke or Dead? Post-Retirement FIRE Calculator” on Engaging Data is an interactive tool designed to help individuals, particularly those interested in the Financial Independence, Retire Early (FIRE) movement, visualize and assess the longevity of their retirement savings. This calculator addresses the concern of longevity risk, which is the risk of outliving one’s retirement savings. This risk is especially pertinent for those considering early retirement, as their retirement period could extend 50 years or more.

Key Features

• Interactive Visualization: The calculator provides a graphical representation of the likelihood of different financial outcomes throughout retirement. It uses colors to indicate success (green for not running out of money) and failure (red for depleting all funds).
• Historical Data Simulation: It calculates probabilities based on historical stock, bond, and cash returns from 1871 to 2019, considering 98 different historical cycles. This approach helps users understand how their retirement savings might perform under various market conditions.
• Customizable Inputs: Users can input their starting retirement balance and adjust other parameters including asset allocation to see how these changes affect their retirements financial outcome.
• Longevity Risk Visualization: The tool visualizes the “Wedge of Death,” highlighting the increasing likelihood of death as one ages and how it impacts the probability of financial success or failure in retirement.