We aren't worried about SORR in retirement. Shocking I know!
But the reason is, SORR will
only affect our ability to spend on the fun stuff. We also don't plan to follow some specific % withdrawal rate.
The thought process of withdrawing a specific % of assets each year based on ones account value, never made sense to us. It completely restricts your ability to spend much more in your earlier years of retirement, when you are probably going to be doing more, than when you are in your late 70s, 80s, and even 90s... We don't want our retirement to be held hostage by some set % or limited by SORR (market fluctuations.) "Sorry honey, we can't take that amazing vacation we planned this year because the market was down!" That's not our idea of what our retirement should look like.
Because of that mindset, we decided to go against the status quo and do things a bit differently. We simply did some backwards math and made dang sure we will have enough secure, guaranteed recurring income and money set aside by retirement, to fully fund all of our "minimum required living expense" (housing, utilities, transportation, food and healthcare) plus a little extra $ cushion for any "unknowns" thrown in there for good measure. This plan is fully funded, indexed to inflation, tax managed and will continue until the younger of us turns 93. The rest of our investments and savings income is what we consider our "fun money" and we can spend it as fast as we want and on whatever we want, without regret. And when the balance in those accounts go up or down with market cycles, we won't care because we are comforted in knowing that we have all of our minimum living expenses covered for our lifetimes, and that the income for those expenses is secure and not affected by market fluctuations. It makes our pending retirement a lot less stressful knowing our "overall number" and that we are good to go, regardless of the SORR or having to stick to some arbitrary % withdrawal rate.
That said, we are not oblivious to others situation and understand not everyone will be as fortunate as we have been or will have planned it out using the same thought process we are using. But to each their own, right? Retirement is about spending and enjoying
your life and how you chose to do that is your business and all that matters.