With inflation causing stress in all age groups, here are some reassuring words for retired people concerned by warnings that they should only be tapping 3% instead of 4% of their portfolios: Keep calm and spend on.
Of course, this doesn’t apply to a lot of retirees, but the sort of person who worries about appropriate withdrawal rates is probably diligently saving for retirement, or already has. A bigger problem, according to financial advisers, is that too many of their clients don't actually spend enough of the money they have squirreled away. They're so paralyzed by the risk of depleting their savings, they scrimp more than they need to.
It's a good reminder of how retirement planning depends on emotional factors that are separate from the risks associated with, say, inflation or lower bond returns. A lot more goes into estimating how long you'll live or how much you want to leave to your children than algorithms and actuarial tables.