We, and loads of others, have written about the importance of understanding safe or sustainable withdrawal rates when saving for retirement. How much will I be able to take out of my savings each year and not end up eating cat food should I be lucky enough to live to 80? Assumptions about this are key to the retirement calculators you find online, for example. The most commonly cited rule of thumb is 4%.
But what if we’ve all been worrying about the entirely wrong thing? Continue reading