Retirement account withdrawals in today's dollars

As retirement account withdrawals are shown in today's dollars, how will I know what to withdraw in the future?
For example, if ESPlanner shows $20k for annual retirement account withdrawals, do I actually withdraw $20k per year, or do I need to make larger withdrawals to account for inflation?


dan royer's picture

Each year that you run the program you will be looking at the amount in that year's "today's dollars." So when you run the report in 2025 you'll be seeing the numbers in 2025 dollars. All of the variables will of course change from year to year anyway--for example, you need to update your account balances at the beginning of each year. If you continue using the program you'll want to update each year to capture tax updates too.

That makes sense - thanks for the quick reply.

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