Faculty Publications

Title

What If Retirees Don't Want To Run Out Of Money In 30 Years?

Document Type

Article

Publication Date

8-4-2016

Abstract

Traditional safe withdrawal rate literature regularly makes the assumption that retirees will choose a withdrawal rate that will leave precisely no wealth after the final withdrawal in the thirtieth year of retirement. Retirees cling to the inflation-adjusted withdrawal amounts, which leaves them playing a game of chicken as their wealth plummets toward zero.