Longevity and Sustainable Withdrawal Rates

Often, withdrawal rate strategies are based on a fixed planning horizon. For example, a 30-year retirement horizon for a 65-year-old client.

In a 2008 paper published in the Journal of Financial Planning titled Joint Life Expectancy and the Retirement Distribution Period, Dr David Blanchett, CFA (now Morningstar head of retirement research) and his twin brother Brian Blanchett CFA, CFP, set out a framework for determining withdrawal rates based on survival probability, rather than a fixed planning horizon.

In this video, I illustrate how planners can personalise this framework to each client, using the Timelineapp!


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