Same-Sex Couples and Sustainable Retirement Withdrawal Rates

10 Pages Posted: 9 Dec 2015 Last revised: 12 Dec 2015

See all articles by John B. Mitchell

John B. Mitchell

Central Michigan University - Department of Finance and Law

Zachary Felton

Independent

Date Written: December 8, 2015

Abstract

This paper compares sustainable retirement withdrawal rates for same-sex versus heterosexual couples. Due to convergence of expected longevity for males and females at typical retirement ages, systematic differences between same-sex versus heterosexual couples are slight, ranging from .03% at age 50 to less than .4% at age 85. Therefore, same-sex couples can employ conventional withdrawal rate recommendations with, at most, slight modification. Due to a lack of public data regarding mortality differences based on sexual orientation, differences in mortality expectations between individual members of same-sex and heterosexual couples cannot be explored. Members of same-sex couples, like all retirees, should adjust withdrawal rate expectations periodically to reflect individual conditions.

Keywords: Sustainable Withdrawal Rates, Retirement Planning, Same-sex Couples

JEL Classification: C15, D1, G11, G17

Suggested Citation

Mitchell, John B. and Felton, Zachary, Same-Sex Couples and Sustainable Retirement Withdrawal Rates (December 8, 2015). Available at SSRN: https://ssrn.com/abstract=2700757 or http://dx.doi.org/10.2139/ssrn.2700757

John B. Mitchell (Contact Author)

Central Michigan University - Department of Finance and Law ( email )

328 Sloan Hall
Mount Pleasant, MI 48859
989-774-3651 (Phone)

Zachary Felton

Independent ( email )

No Address Available

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