Hundred Summers

Sequence-of-returns risk, shown with real market history

Two retirees earn the same average return and one runs out of money: why the order of returns dominates retirement outcomes, which historical cohorts it broke, and how to test a plan against it honestly.

Two retirees each average 6% a year over thirty years. One dies wealthy; the other runs out at 82. The difference isn't return, cost or spending — it's order. Losses in the first years of drawdown are lethal because each withdrawal in a down market sells more units, and those units never recover. The same losses in year twenty barely matter. Accumulators experience the average; decumulators experience the sequence.

The cohorts it actually broke

Run every rolling retirement window through market history since 1928 and the failures cluster tightly. The 1929 cohort you'd guess. The worse one you might not: the mid-1960s — average returns over their thirty years were respectable, but the 1966–81 inflation grind forced inflation-swollen withdrawals into a stagnant market for fifteen straight years. Sequence risk is usually told as a crash story; history says it's just as much an inflation story.

Testing a plan against it

Averages can't see this, so honest testing takes two forms. Simulation: thousands of market paths with fat-tailed shocks and inflation that persists once it takes hold — the features that made 1966 lethal — giving a success rate rather than a single line. Replay: your actual plan walked through every historical start year, so you can point at exactly which pasts it survives. Hundred Summers' Stress Test tab does both on your own plan — the backtest runs every window since 1928 — and the deterministic mitigations (a guaranteed floor via the State Pension, deferral or an annuity; a cash buffer; flexible spending in bad years) can each be modelled and re-tested rather than taken on faith.

Education, not advice. Simulations and backtests are illustrations built on stated assumptions, not predictions — the Methodology page publishes every one Hundred Summers uses. For a personal recommendation speak to an FCA-regulated financial adviser.

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Hundred Summers. Education, not regulated financial advice; projections and results are illustrations, not guarantees.
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