making your retirement savings last
How much money do I need in retirement? A question that would be simple to answer if not for one inconvenient nuance of retirement planning – the fact that nobody knows how long it will last. This lack of insight into our own mortality has led to the widespread adoption of the 4% rule. The 4% rule is the basis of retirement plans across the world, heralded as a ‘safe’ withdrawal rate from your portfolio. A few simple calculations and the 4% withdrawal rate leads to the magic number that is the lump sum you need in retirement. Voila.
However, Morningstar’s 2023 State of Retirement Income report by Christine Benz, John Rekenthaler and Jeffrey Ptak, has reassessed the rule, taking into consideration the current market environment…
