Here’s the New ‘Safe’ Withdrawal Rate: Morningstar
December 13, 2022 by John Manganaro
Investors hoping to utilize a “safe” fixed real withdrawal strategy for managing their retirement income can plan to withdraw 3.8% of their portfolio’s value per year, according to Morningstar’s newly published report, “The State of Retirement Income: 2022.”
In the newly published analysis, the analysts found that a starting withdrawal rate of 3.8% delivers a 90% success rate (defined here as a 90% likelihood of not running out of funds) over a 30-year time horizon. The analysis assumes a balanced portfolio of 50% stocks and 50% bonds.