Retirement Withdrawals: The Historic Return Dilemma
11 Pages Posted: 8 Apr 2011
Date Written: April 5, 2011
Historic returns from 1926 to present are commonly used to predict future returns when planning retirement withdrawals. This paper examines the accuracy of historic returns for predicting future returns, implications of historic returns for setting withdrawal rates, and the ramifications for retirees following such advice.
Keywords: Retirement, Withdrawal Rate, Historic Returns
JEL Classification: D14, E17, G11, J26
Suggested Citation: Suggested Citation