Living to 120 is becoming an imaginable prospect::undefined

  • frezik@midwest.social
    link
    fedilink
    English
    arrow-up
    2
    ·
    1 year ago

    You might want to look at the Trinity Study of retirement portfolios. The general rate of withdrawal is lower than what you’re quoting here. Closer to 4% or lower. Though this is giving way in some quarters to a sliding system, where you live it large in good return years, and frugaly in bad years.

    But again, this all overlooks how that depends on a proportion of working people feeding stock market returns.

    • V H@lemmy.stad.social
      link
      fedilink
      English
      arrow-up
      1
      ·
      1 year ago

      The general rate of withdrawal need to be lower if you have a portfolio that is very conservative. That may make sense when you’re saving for you yourself and have a low risk tolerance, but it’s not needed. That people feel worried enough to do that, though, is a good argument for insurance/state run pension schemes, because they an inherently pay out more since they can smooth out the risks and pay toward the maximum averaged returns.