A new Morningstar report found that the safe starting withdrawal rate for retirees from a balanced portfolio has risen in the past year and investigates a variety of withdrawal strategies to determine how well various approaches serve retirees.

The research, which is contained in Morningstar's "The State of Retirement Income: 2022," determined that a starting withdrawal rate of 3.8% is safe for a balanced portfolio using an approach of fixed real withdrawals – up from 3.3% in 2021's report. The rate is based on a 90% likelihood of not running out of funds and a 30-year time horizon.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.