You might want to look at the Trinity Study of retirement portfolios. The general rate of withdrawal is lower than what you’re quoting here. Closer to 4% or lower. Though this is giving way in some quarters to a sliding system, where you live it large in good return years, and frugaly in bad years.
But again, this all overlooks how that depends on a proportion of working people feeding stock market returns.
The general rate of withdrawal need to be lower if you have a portfolio that is very conservative. That may make sense when you’re saving for you yourself and have a low risk tolerance, but it’s not needed. That people feel worried enough to do that, though, is a good argument for insurance/state run pension schemes, because they an inherently pay out more since they can smooth out the risks and pay toward the maximum averaged returns.
You might want to look at the Trinity Study of retirement portfolios. The general rate of withdrawal is lower than what you’re quoting here. Closer to 4% or lower. Though this is giving way in some quarters to a sliding system, where you live it large in good return years, and frugaly in bad years.
But again, this all overlooks how that depends on a proportion of working people feeding stock market returns.
The general rate of withdrawal need to be lower if you have a portfolio that is very conservative. That may make sense when you’re saving for you yourself and have a low risk tolerance, but it’s not needed. That people feel worried enough to do that, though, is a good argument for insurance/state run pension schemes, because they an inherently pay out more since they can smooth out the risks and pay toward the maximum averaged returns.