Your Retirement Number

A Numerical Benchmark, Not a Retirement Decision

The product can compare invested assets with an expenses-based benchmark. Reaching that benchmark does not determine whether or when a person can retire.

The 25x Rule

A commonly discussed numerical benchmark is the 25x rule:

Benchmark amount = 25 times the annual expense input.

For example:

• $40,000 annual expenses → $1,000,000 benchmark
• $60,000 annual expenses → $1,500,000 benchmark
• $100,000 annual expenses → $2,500,000 benchmark

Why 25x?

The 25x calculation is the inverse of a 4% annual withdrawal assumption. The label does not make the withdrawal rate safe or suitable for a user.

25 x annual expenses = benchmark associated with a 4% annual withdrawal assumption

For example, 4% of $1,000,000 is $40,000. The model does not establish that this withdrawal can be sustained for a particular person or period.

What Plan in Decades Shows You

When you create a scenario, we calculate:

1. Your current position - How close you are to 25x
2. Your trajectory - When you’ll reach 25x at current savings rates
3. What-if analysis - How changes affect your timeline

This shows when the scenario first reaches the selected numerical benchmark. It does not answer whether the user should stop working.

Important Caveats

The 25x rule is a guideline, not a guarantee:

• It assumes a diversified portfolio
• It doesn’t account for pension income (which reduces the amount you need)
• Healthcare costs vary dramatically by country
• Your expenses may change in retirement
• Sequence of returns risk matters in early retirement

Use it only as an inspectable numerical benchmark within the scenario, not as a retirement-readiness assessment or recommendation. Consider appropriately qualified and authorised advice before making retirement or financial decisions.