Does International Diversification Improve Safe Withdrawal Rates?
Safe withdrawal rate (SWR) studies have been based on a few asset classes and rarely incorporated international diversification. This is problematic, as an SWR depends on portfolio return and volatility, and broader diversification can extend the efficient frontier toward better retirement outcomes. To determine the benefits of international diversification, I looked at the relative performance of withdrawal rates in 20 developed-market countries.
Pfau, Wade, "Does International Diversification Improve Safe Withdrawal Rates?" (2014). Faculty Publications. 129.