Many savers are not sure how much money they can withdraw in retirement and help their savings last. In fact, 88% of participants in the Employee Benefit Research Institute’s 2014 confidence survey, said it would be valuable to receive a recommendation for a monthly withdrawal rate from the financial firm that handles their plan.

Accumulating adequate savings is top of mind for those planning retirement. But determining one’s rate of withdrawals in retirement is equally important. How fast savings are drawn down will have a big impact on how long those savings can last.

Talking about withdrawal rates with clients who are still working may help them adjust their expectations. Explore their current savings behavior and share the article, “Withdrawing too much in retirement limits how long our savings last,” which can give them a view of the impact of withdrawal rates on savings. If clients can understand the ramifications of their saving behavior today, they may choose to save more money, delay retirement, or examine their budget and expenses more closely.

Setting, or re-setting, retirement goals can also be an opportunity to launch a discussion of other topics and strategies, including account consolidation and rollovers, Roth IRA conversions, tax diversification, and additional tax-smart ideas.


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