I'm trying to best show a scenario where I retire early and my wife keeps working. To do this, I'm following advice from a previous thread that I found where a pension amount equivalent to the spouse's salary is used. My question is how is that applied to the model?
Is the pension amount used to offset the annual withdrawal amount? i.e., if I have an annual withdrawal amount of 5k and a pension amount of 5k, does that effectively mean that the model assumes nothing is being withdrawn from the portfolio each year?
Is the pension amount used to offset the annual withdrawal amount? i.e., if I have an annual withdrawal amount of 5k and a pension amount of 5k, does that effectively mean that the model assumes nothing is being withdrawn from the portfolio each year?