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The Surprising Amount Retirees Pull Out of Savings
Last week, Merrill Lynch and Age Wave came out with a survey of retirees which found not only didn’t they all downsize when retiring, 30% who’ve moved since they retired have upsized their homes. Now, a fascinating survey by the Hearts and Wallets financial research firm has discovered that many retirees are completely ignoring a time-honored rule of thumb about retirement withdrawals….Since financial adviser Bill Bengen came up with his “4% rule” in the 1990s, we’ve been told that to avoid outliving your money, you should withdraw 4% of your investment portfolio (plus inflation) a year….But when Hearts and Wallets surveyed 1,209 households age 65 and older who had assets of more than $100,000, the researchers found that 12% took out over twice the 4% rule last year - 9% or more. Conversely, 28% withdrew less than 1% and many of those retirees didn’t withdraw a dime. Read More…
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