Retirement withdrawals
Preventive reductions and risk management
DOI:
https://doi.org/10.61190/fsr.v20i1.4690Keywords:
Monte Carlo, Withdrawals, RetirementAbstract
This paper builds on Stout and Mitchell (2006), Stout (2008), Spitzer (2008), and Blanchett and Frank (2009) by creating a preventive approach to withdrawal management. Proactive strategies, reducing the withdrawal rate before there are insufficient funds, are shown to significantly reduce the probability of ruin while maintaining the median withdrawal rate. Subpopulation effects of strategy changes and improvements in reporting of results are explored. Data covers 1926-2008 and the life table is extended to 108 years. Optimization yields a 6.04% median withdrawal rate and 0.2% probability of ruin.
Downloads
Downloads
Published
Issue
Section
License
Copyright (c) 2011 Academy of Financial Services
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Author(s) retain the copyright and full publishing rights without restriction.
Author(s) grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows reusers to distribute, remix, adapt, and build upon the material in any medium or format, for noncommercial purposes only. Reusers must acknowledge the work's authorship and initial publication in this Journal.
Noncommercial means not primarily intended for or directed towards commercial advantage or monetary compensation.
In addition, FSR grants to the UGA Libraries a worldwide, non-exclusive license to all content published by the Journal, including metadata, that is necessary to publish, transmit, and index the Journal and to preserve its content over time.
