Drawing down retirement money

THERE are broadly two phases in retirement planning: accumulation phase and withdrawal phase. In the course of our work as financial advisers, we observe that a lot more emphasis has been placed on the former although the latter is more complex and requires more attention.

Retirement planning during the withdrawal phase is more complex because retirees face the following risks:

To make matter worse, with a likely low return environment going forward, retirees face more challenges. They need meticulous planning to ensure they have sufficient income in their golden years. Here, we show how retirees can do that using a bucketing approach.