A common way to measure the sustainability of retirement income is to calculate an annual withdrawal rate – the amount of income as a proportion of a retiree’s total capital. For instance, drawing an income of $4,000 a year from savings of $100,000 is, of course, a four per cent withdrawal rate. And a leading topic of discussion in the retirement services industry is identifying an optimal drawdown rate so that a retiree’s capital lasts as long as possible. Recently-published research from Vanguard in the US goes a step further by looking how much of annual retirement drawdowns by retirees […]