FAQ

Frequently asked questions

Quick answers about how the calculator works and how to interpret results.

How much money do I need to be financially independent?

A common baseline is annual spending divided by a withdrawal rate such as 3.5% or 4%. This tool also shows plan resilience across historical windows because outcomes depend on market history and allocation.

What is the 4% rule?

The 4% rule is a rule of thumb that suggests withdrawing 4% of your portfolio per year, adjusted for inflation. It is a starting point, not a guarantee.

Is the 4% rule reliable in the UK?

It can be a useful baseline, but UK taxes, inflation, and market sequences can change outcomes. A historical backtest is more informative than a fixed return assumption.

What is a safe withdrawal rate?

A safe withdrawal rate is a spending rate designed to last across difficult market periods. This calculator tests withdrawal rates across many historical windows.

What is the FI number?

The FI number is the estimated portfolio size required to sustain your spending without employment income. It is calculated using a baseline withdrawal rate and is shown alongside resilience results.

What does plan resilience mean?

Plan resilience is the percentage of historical windows in which the plan remained sustainable for the full horizon. It is a stress test, not a forecast.

Does this include UK taxes?

Yes, the calculator models tax-aware withdrawals across ISA, SIPP, and GIA using simplified UK tax rules. It is intended for planning rather than personal tax advice.

Does it include capital gains tax (CGT) in a GIA?

Yes, GIA withdrawals account for CGT in a simplified way based on gains and allowances. This helps estimate net spending delivered after tax.

Does it include the UK State Pension?

Yes, you can set the annual amount and start age, and it reduces the withdrawal need once it begins.

Can I model rental income or a DB pension?

Yes, you can add other annual income streams with a start age and an inflation adjustment toggle.

What does modern era (1970+) mode do?

It runs the backtest using only data from 1970 onward. This is useful if you prefer to exclude earlier historical periods.

Why does it say there is not enough data in modern mode?

If your horizon is longer than the modern-era window, there are not enough years to run rolling historical scenarios. The tool warns you and shows the window length.

Are results inflation-adjusted?

Yes, results are shown in inflation-adjusted terms so spending power is comparable across time.

Do fees matter?

Yes, even small annual fees compound over time. You can include an annual fee to reduce returns each year.

Is this a forecast of the future?

No. This is a historical backtest that shows how a plan would have performed across past market periods.

Do I need to create an account?

No, the calculator works without signup. Basic site analytics may be used to improve performance and usability.

What portfolio allocation should I use?

Allocation depends on your risk tolerance and horizon. The presets are a starting point, and resilience results help compare tradeoffs.

Why does the FI number differ from plan resilience?

The FI number is a baseline rule of thumb, while resilience reflects historical outcomes across many windows. Allocation and horizon can make resilience higher or lower than a simple rule suggests.

What is the best financial independence calculator in the UK?

The best calculator is the one that matches your needs and assumptions. This tool is designed for UK users with tax-aware withdrawals and historical backtesting.

Related links

Start with the calculator, or read the methodology and data sources.

Last updated: 2026-02-23