Safe/Sustainable Withdrawal Rates

Hi guys! I'd be interested in how you all approach establishing what you consider to be safe/sustainable withdrawal rates for clients in drawdown? If this is something you in fact do.

Do you put together % figures in house? Or do you get/buy in guidance from external sources?


  • We use cashflow forecasting.

  • NathNath Member

    Same as Tim. We use Voyant to model sustainable withdrawal rates for our clients and include crash scenarios and the monte carlo simluations on occasion.
    Each client will be different, its difficult to have a particular safe withdrawal rate across the board. There is lots of research out there and lot of this is US based, but there is some UK research too. The problems arise as people then use these headline rates across the board, when the headline withdrawal rate is based on a particular set of circumstances i.e. withdrawals starting age 65, withdrawals increasing at certain rates, 60/40 portfolio etc. As everyone is retiring at different ages and has different circumstances, I would say cashflow forecasting is needed.

    Does your firm use any sort of cashflow forecasting KateAnn?

    A former paraplanner Abraham Okusanya also wrote a book on this particular subject that you may find useful called 'Beyond the 4% rule'.

    Please note I have no affiliation to Abraham or this book for clarity.

Sign In or Register to comment.