For clients, equally important to saving money is learning how to withdraw money in retirement at a sustainable rate. This topic is important not only for retirees, but also for pre-retirees.
In the attached chart, a hypothetical portfolio illustrates how long assets may last given different withdrawal rate scenarios. Some clients may discover they are too optimistic about their ability to withdraw money in retirement. Discussing this topic today may help them reset their expectations, save more money, delay retirement, or examine their budget and expenses more closely.
You may also want to discuss how clients plan to continue investing money in retirement. Investing too conservatively can limit how long savings last.
In general, conversations about planning for income in retirement may be helpful for uncovering new ideas. For example, investors can take steps, such as an IRA rollover or account consolidation, that make retirement assets easier to manage, or find out about new products, such as variable or fixed annuities, that can create income streams in retirement.