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How Can Retirees Adjust Their Spending For Inflation Without Breaking The Bank?

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A final example in the decision rules category is the Target Percentage Adjustment method introduced by David Zolt in his 2013 Journal of Financial Planning article, “Achieving a Higher Safe Withdrawal Rate with the Target Percentage Adjustment.”

The basic premise of his rule is that retirees are willing to forgo an inflation increase, but will never want to accept a decrease in their nominal spending.