Manage your retirement expectations - MoneySense

Manage your retirement expectations

Retiring soon? You need a realistic withdrawal plan.



Be realistic about how much you can withdraw from your retirement portfolio each year.

Many new retirees assume they can spend 7% to 10% of their nest egg every year. That’s fine in a rising stock market, but if the market slumps and you keep spending at that rate you’ll quickly deplete your savings.

To make your money last, you should plan to withdraw only about 4% a year.