How to retire in a recession without running out of money

The Telegraph | Aug 2, 2020 at 6:00 AM
  • Retirees who live off private pensions risk running out of money as the global downturn continues to have a devastating effect on portfolios, a report from one of the world’s largest asset managers has found.
  • It compared what would happen in each scenario if the pensioner withdrew $25,000 (5pc of their portfolio) each year, adjusting for inflation, as opposed to using a “dynamic drawdown” approach.
  • In found that someone who retired in 1973 and withdrew 5pc a year would run out of money 23 years into their retirement, more than a decade earlier than planned.