Withdrawal Phase
Also known as: Decumulation Phase, Retirement Phase, Spending Phase
The retirement period when you systematically withdraw money from your accumulated wealth to fund living expenses.
Detailed Explanation
The Withdrawal Phase, also called the decumulation phase, begins when you stop actively earning and start drawing down your accumulated wealth for living expenses. This phase requires different strategies than the accumulation phase, focusing on capital preservation, sequence risk management, and sustainable income generation. Indian retirees typically enter this phase between 55-65 and may need their portfolio to last 25-30 years.
Related Calculators
Related Terms
Decumulation
The process of systematically spending down accumulated wealth during retirement to fund living expenses.
Sequence of Returns Risk
The risk that poor investment returns early in retirement can permanently impair a portfolio despite good later returns.
Withdrawal Rate
The percentage of retirement portfolio withdrawn annually to fund living expenses.