Many retirees have carefully developed income plans. Others just take some cash out and hope for the best.
Kiplinger’s Personal Finance and Athene have compiled some data on the “whatever” approach to income management in a summary of results from a survey of 818 US adults, ages 50 or older, that was conducted in June.
About 35% of the retired participants said they had no set plan for deciding how to withdraw money from retirement savings. They said they withdraw whatever money they need.
Another 16% of the retirees surveyed said they weren’t sure what they do about retirement income.
What It Means
You might feel as if everyone knows what you know about income investing and income planning, but, apparently, this is not true.
Kiplinger’s and Athene included data in their survey summary only for participants with $100,000 or more in household net worth, excluding the value of a primary residence.
Many of the survey participants did say they were using savings withdrawal guidelines.