Decumulation: where does the effective drawdown end up?
A South African living annuity that starts at a chosen drawdown percentage and then
lifts the rand income every 1 January by actual measured inflation. The fund runs on real
60% ALSI / 40% ALBI returns net of 2.5% p.a. costs. Each path shows the
effective drawdown — income payable divided by the fund left to pay it.
1 The path
Selected path
Selected path, past the 17.5% ceiling
Same drawdown, every other start year
Legislated band (2.5% / 17.5%)
2 Pick a start year and a starting drawdown
Every combination of start year (1996 onward) and starting drawdown (2.5% to 17.5% in 0.5% steps) — 961 paths in all. Hover any cell to draw it above; click to pin it. Blue means the income was still payable on the latest data; orange means the effective drawdown pushed through the 17.5% legislated ceiling, at which point the income can no longer be drawn in full.
Survived:lower effective drawdown → deeper blue
Breached 17.5%:failed sooner → deeper orange
Fewer than 10 years of data — not yet tested
3 The buildup behind the selected path
Year by year: the fund at each 1 January, the income payable for the year ahead, and the effective drawdown that results. This is the calculation the path graph plots.