Yahoo Finance
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
For many retirees, their biggest fear is outliving their money.
A sudden market crash or intense wave of inflation wiping out purchasing power could unlock a dreaded outcome: poverty in old age.
This could be why 67% of Americans surveyed by Allianz Life (1) said they were more worried about running out of money in retirement than death.
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 —6 ways to build wealth like a landlord without actually being one JP Morgan sees gold hitting $6,000/oz before 2027 — and a gold IRA lets you hold the physical metal while deferring the tax bill.Get your free guidefrom Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time.What to do before the window closes But this survey is based on sentiment.
Another report by researchers David Blanchett and Michael Finke focused on actual spending data and came to a surprising conclusion: many retirees are actuallyunderspending.
Here's why there's a good chance that your fears of draining your portfolio are overblown.
In a 2024 study published in the CFP Board'sFinancial Planning Reviewjournal (2), Blanchett and Finke found that retirees display a "behavioral resistance to spending down savings." Instead, retirees focus on spending income from various sources such as Social Security, pensions and wages.
In fact, nearly 80% of their lifetime spending is fueled by these sources.
The report also found that a typical 65-year-old couple only withdraws 2.1% from their portfolio annually, while a single 65-year-old withdraws just 1.9%.
Both are significantly lower than the standard 4% rule (3) that is widely recommended by financial experts.
Additionally, this study focused on 65-year-olds, meaning these retirees are still in the 'go-go' years of retirement — or when spending is expected to be highest.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment