Faculty Publications

Title

How Are People Who Retired In The Year 2000 Doing Today?

Document Type

Article

Publication Date

7-21-2016

Abstract

An interesting implication of the following chart is the predicted sustainable withdrawal rate of only 3.12% for a retiree in January 2000. At that point, market valuations had reached a historical peak (about 50% higher than seen in the historical period when we could estimate the sustainability of the 4% rule). With the safe savings rate approach, a 2000 retiree with the case study assumptions I discussed in Tuesday’s article could have met her spending goal with a 2.8% withdrawal rate.