Making Your Nest Egg Last a Lifetime

The brief’s key findings are:

• Managing a nest egg in retirement is hard.

• People don’t know how long they will live and what asset returns to expect.

• “Rules of thumb,” such as spending either asset income only or a fixed percent of the capital each year, have significant limitations the capital each year, have significant limitations.

• To minimize risk, a household should consider buying an annuity to cover at least basic living expenses.