Retirement

When inflation volatility spikes: Setting a realistic withdrawal rate

April 12, 2022

A changing tide calls for a deeper understanding of the history
Different return environments could call for different withdrawal rates
Adjusting a withdrawal strategy with inflation volatility in mind
Sustainable portfolio withdrawal scenarios for 2022 retirees—three scenarios
This chart displays three sustainable portfolio withdrawal scenarios for 2022 retirees. The upside scenario estimates a 3.3% withdrawal rate, the baseline a 3.0% withdrawal rate, and the downside a 2.8% withdrawal rate. These numbers depict estimated annual inflation-adjusted withdrawal rates for the 30 years ending in 2052.
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