Pre-retirees overestimating 'safe' yearly cash withdrawal level

Research by the firm, which surveyed 1,009 adults aged 50-plus who have a defined contribution pension and are not in retirement, identified 7% as the figure people think they can safely withdraw from a £100,000 pension a year, spending both capital and investment returns, while not running out of money. Until recently, pensions experts had generally suggested 4% as a 'safe' withdrawal rate that, while ensuring sufficient capital and investment returns, would avoid people running out of money. This view has, howeer, been challenged by Morningstar Research, which suggested, based on both ...