Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
https://www.kitces.com/blog/consumption-gap-in-retirement-why-most-retirees-will-never-spend-down-their-portfolio/?utm_source=Nerd%E2%80%99s+Eye+View+%7C+Kitces.com&utm_campaign=7e8f194517-NEV_MAILCHIMP_LIST&utm_medium=email&utm_term=0_4c81298299-7e8f194517-57089725The end result is that while in theory a retirement portfolio is meant to be spent, in practice most retirees faced with an ever-open-ended potential of living many more years will feel compelled to keep extra assets available, just in case… and never actually reach the point of depleting the retirement portfolio at all! Which, notably, isn’t a sign of inefficient portfolio spending or a consumption gap, but merely the prudent reality of dealing with an uncertain future!
Notably, in the context of this more conservative scenario, a 65-year-old retiree’s life expectancy is only to their mid 80s (or early 90s as the joint life expectancy for a married couple). Which means a significant number of retirees who use this as their planned retirement spending strategy will pass away before they ever materially dip into retirement principal at all!