How much can you spend in retirement?
Most people spend years saving for retirement. Then, when the time comes to begin spending their savings, they have no strategy in place.
Many studies—including our own research1—have shown that successful retired investors often don't spend much of their retirement savings, and their money continues to grow. It's not a terrible problem to have, but it could mean these investors are being overly frugal in retirement because they're not sure how much they can "safely" spend.
See other behavioral factors that can affect retirement spending
It's crucial to have a strategy for accumulating retirement assets. Equally important is a strategy to withdraw from your retirement savings. Your withdrawal strategy should accomplish 2 often-competing goals:
- Having enough money to support your desired lifestyle.
- Ensuring there's enough left for the future, including any money you plan to leave to heirs.
There are several ways to successfully withdraw from your retirement savings. Our advisors can help you determine which approach might work best for you.