The Impact of Decreasing Retirement Spending on Safe Withdrawal Rates
May 25, 2017
/
By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
Safe withdrawal rates typically assume retirees maintain a stable standard of living. But new studies show that spending declines throughout retirement by as much as 1%-2% per year. This discrepancy may cause us to be underestimating the safe withdrawal rate.