Is your cautious retirement spending doing more harm than good?
As we age, the boogeyman gets replaced with a new fear: running out of money in retirement. This concern is understandable given so many Americans are now responsible for not only building their retirement savings but also deciding how much they should pay themselves annually in retirement. It’s a problem many don’t feel adequately prepared to solve, especially when failure means a funding shortfall at the end of life. Recent research from Morningstar’s Behavioral Insights Group finds half of retirees opt for highly simplified approaches for determining their retirement spending, such as calculating their current expenses, just spending dividends, or anchoring on required minimum distributions.