- How much you can safely withdraw from your assets in retirement depends on factors including the value of your assets and the age at which you start to draw from them, health and life expectancy
- Try to get an idea of how much income you will need each year in retirement for essential spending and how much you will want for discretionary spending
Everyone has a different lifespan, lifestyle, value of assets and sources of income, so a one-size-fits-all solution is not going to be right for everyone. The amount you can safely withdraw each year depends on factors including the value of your assets and the age at which you start to draw from them, health, life expectancy, and whether you have dependents to provide for.
This means that it is essential to have a plan to ensure that you can take what you need without risking that your money runs out before the end of your life. Not having a long-term plan and investment strategy can lead to withdrawing too much too soon, so that difficult adjustments must be made or you run out of money before the end of your life. Or you might be too cautious and go without things you could afford.