Sentences with phrase «wealth accumulation target»
Focusing on a «safe withdrawal rate» and then deriving a «wealth accumulation target» to achieve by the retirement date is the wrong way to think about retirement planning.
https://ideas.repec.org/
On the accumulation side, research is mostly about how to achieve this wealth accumulation target.
On the retirement side, research is mostly about finding a «safe withdrawal rate,» which is then used to compute a «wealth accumulation target» so that desired retirement spending can be funded from this wealth at the desired withdrawal rate.
The viewpoint is catching on with advisors and consumers, but retirement research is still largely focused on the notion that individuals need to find a safe withdrawal rate for their retirement and then use that as a barometer to compute a wealth accumulation target in order to fund their desired retirement spending.
When linking the accumulation and retirement phases together, the concepts of «safe withdrawal rates» and «wealth accumulation targets» end up serving as almost an afterthought.