Pension Drawdown – Starting drawdown poses some of the most difficult decisions a retiree must take:-
- How long a retirement should I plan for?
- How much income can I withdraw?
- What is the minimum income that I can accept even during poor markets?
- Should a fixed inflation linked income be the target or a flexible drawdown strategy used to both protect the portfolio and to allow a higher income when the portfolio balance exceeds expectation?
- Is leaving a significant portfolio balance on death an objective or do I need to withdraw the maximum feasible during retirement?
- Do I periodically balance the portfolio maintaining the bond/equity ratio and risk profile or adopt one of the variable bond/equity ratio strategies designed to maximise the probability of the portfolio surviving retirement but vary the risk profile of the portfolio?
- Which are the best simulation tools to predict a Safe Withdrawal Rate (SWR)?
- How do I know that my portfolio is on track and at what point do I have act?
- How do I know when I can take more income from my portfolio?
All these aspects of drawdown planning in a series of posts broken down as follows:-
- 3.1 Drawdown Simulation Tools
- 3.2 The Bengen 4% Rule – Does it still work? Where Doesn´t it
- 3.3 Portfolio Balancing or withdrawing from bonds or equity based on a set of rules to maximise portfolio duration (Income Harvesting)
- 3.4 Fixed or variable Drawdown?
- 3.5 Tracking Portfolio performance
- 3.6 Minimising the Longevity Risk
- 3.7 Plan B for portfolio crises
- 3.8 My Retirement Plan
Go to the first post in the series 3.1 Drawdown Simulation Tools.