Outlook Money
The 4% rule of withdrawal has long stood as a cornerstone of planning, advising retirees that their savings will last 30 years, adjusted for inflation.
The risk of making a dent in your corpus can be mitigated by adopting a staggered bucket strategy, ensuring that no withdrawals are made from equity investments in the initial years of retirement.
Recognising that inflation rates can vary significantly across countries and over different periods of time is crucial.
It is useful to begin planning well in advance for retirement; knowing the goalpost helps to plan well.
Creating a withdrawal plan considering all circumstances is crucial to avoid running out of money or compromising your lifestyle.
Compiled By Himani Verma