Mindset
Rent for life, die with zero: spending your money on purpose
Most savers end life with far more than they needed. Why a plan that spends down on purpose can pay for more living, and the risks that stop you going to zero.
Spend-down planner
Instead of protecting capital forever, spend it on purpose: a level monthly budget that uses your savings by the age you choose.
Your result
- You can spend
- CHF 6’903 / month
- With a fixed withdrawal rate
- CHF 5’167 / month
Your result, explained
Spending about CHF 6’903 / month in total, pensions included, uses your savings by 95 and leaves CHF 0. A fixed 4.0% rule would allow CHF 5’167 / month, keeping the capital intact.
This assumes steady returns and a fixed end age. Plan a margin: living longer or a bad market decade early on can shorten how long the money lasts.
Estimates for planning, not advice. Use at your own risk. Read the full disclaimer
How it is calculated
The tool finds the level monthly budget, in today’s francs, that brings your savings to the amount you want to leave at the end age:
- It adds today’s savings and the present value of your future pensions.
- It subtracts the present value of what you want to leave.
- It spreads the rest evenly over the months until the end age at the real return.
The result is total spending, pensions included. Compare it with a fixed withdrawal rule, which keeps the capital. More in die with zero, rent for life.
Frequently asked questions
Is spending down risky?
It needs a margin. Choose an end age you are unlikely to outlive, keep a reserve for care, and review the plan every year. Pensions paid for life are the safety net.
How is this different from the 4 % rule?
A fixed rule keeps most of your capital and may leave a lot unspent. Spending down uses the capital as well, so you can spend more each month.
What if I live longer than the plan?
AHV and pension-fund pensions continue for life. Plan with a late end age, for example 95, and a reserve, and recalculate as you go.
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