I agree that firecalc is best for accounting each individuals portfolio/spending/pension/social security/etc. Designing a portfolio that has survived the worst events from the last 140+ years already seems extremely conservative for me...but of course "past performance does not predict future results". This is why I think everyone here should remember a little DIY ethics. There is no guarantee in the event of collapse or that money will keep you alive in the event of horrible health problems.
@Carlos
I am in my early thirties and 3.7% was near the magic no fail for me...but I don't plan to live to 110. However, I think 3% is a good number for conservative people who are afraid they will never be able to find work again or would like to have a plan for their deathbed. People who like to afford treating their life filled with disease, disability, and cancer may need 2% if they do not want to rely on the government in such a case.
I left my job with what will hopefully be 3.3%. There will always be a certain amount of faith that an ERE budget will not be exceeded since there is not a lot of fat left for trimming.
However, I plan work temporarily if my net worth ever drops below 50% of my starting value.
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jacob
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@Carlos - It really depends, hence the spreadsheet.
If you spend $6000/year and you're fairly well skilled and well connected then even a completely portfolio failure can be replaced by a semi-skilled part time job. It doesn't take that long to make $6000 at $12/hour---1-2 days or work/week or 4 months per year. In this case, you can aim at higher percentages. Savings can even be quite low here. See the book: How to survive without a salary.
If you spend $18000/year and you have no useful(=other people will pay you) skills, then the risk is higher and you need a lower percentage. You also need a lower percentage if you have absolutely no intentions/desires/hope to ever get compensated again. In that case, I'd aim for 3%.
If you're still far from the target, I'd shoot for 4% as a motivating goal and then reconsider my options/potential once reaching it.
If you spend $6000/year and you're fairly well skilled and well connected then even a completely portfolio failure can be replaced by a semi-skilled part time job. It doesn't take that long to make $6000 at $12/hour---1-2 days or work/week or 4 months per year. In this case, you can aim at higher percentages. Savings can even be quite low here. See the book: How to survive without a salary.
If you spend $18000/year and you have no useful(=other people will pay you) skills, then the risk is higher and you need a lower percentage. You also need a lower percentage if you have absolutely no intentions/desires/hope to ever get compensated again. In that case, I'd aim for 3%.
If you're still far from the target, I'd shoot for 4% as a motivating goal and then reconsider my options/potential once reaching it.