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Inflation for the last 10 years have been between 3-4% and most people I read on this board take that to be the figure going forward (for their calculations on needed return + 4% to withdraw).

The USA avg for the last 25 years however is 5.5%.

I'm curious what figure people use for their calculations, and why. It seems clear that some don't use an inflation figure per se, but rely on intercst's reports that include a calculation for the past data that includes inflation in the return surviveability study.

intercst, could you explain a little how the figure include inflation so that I can understand it. It seems to seperate inflation as I'm trying to do goes against your findings where it's included. What real return do you try to achieve to ensure you could withdraw 4% if so desired?

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