Faculty Publications


How Much Can You Safely Spend in Retirement?

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One of the key questions new retirees want to answer is: How much can I safely spend in retirement? Answers will vary, though, as sustainable spending rates in retirement depend on a number of factors, such as: choices about asset allocation and the use of income annuities or individual bonds, current interest rates, desired spending pattern over retirement, degree of flexibility to adjust spending in response to market performance, and length of the one’s planning horizon.