Tag: drawdown
The brief’s key findings are: Studies show that retirees have tended to draw down their financial wealth very slowly. But these retirees generally had defined benefit (DB) pension plans, which pay benefits for life. Hence, this slow drawdown pattern may not hold for new retirees, who rely on 401(k)s. Indeed, the analysis finds that households…
Earlier cohorts had defined benefit plans and therefore less need to tap financial assets. Recent studies have found that past generations drew down their financial assets very slowly in retirement, leaving much of their savings untouched throughout old age. This finding always seemed obvious to me, given that older cohorts had lifetime income from defined-benefit…
