There’s No Magic Retirement Number for Everyone: Wade Pfau
July 23, 2024 by John Manganaro
The development of better variable spending strategies represents one of the most compelling approaches to improving retirement outcomes, according to Wade Pfau, the retirement researcher and co-founder of the Retirement Income Style Awareness platform.
However, Pfau asserts in a recent interview with ThinkAdvisor, many in the general public remain tied to traditional rules of thumb when planning for retirement — either concentrating on achieving a lofty “retirement number” or on pursuing simple “safe spending” frameworks like the 4% withdrawal rule.
Click HERE to read the full story via Think Advisor
Wink’s Moore on the Market: My buddy, Wade Pfau, is dropping some knowledge this morning.
“For those far from retirement, the 4% rule could be a helpful way to calibrate approximate savings needs for retirement, but it does not actually work as a retirement spending strategy.”
Further…
“I am surprised that the power of risk pooling is not more commonly appreciated in today’s retirement planning landscape. People like their Social Security and pension benefits, but they are reluctant to consider commercial annuities that can offer the same types of benefits in terms of supported spending on a lifetime basis.”
Thanks, John Manganaro, for the compelling engagement fodder. -sjm