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Does the Planner apply a 4% Withdrawal Rate?
Does the Planner apply a 4% Withdrawal Rate?

This article will discuss the Income Score and clarifies that we are not applying a 4% withdrawal in your plan.

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

The Planner does not apply a 4% withdrawal rate

The numbers in the Income vs Expenses Chart on your Overview are provided as a means of assessing your standings. The Income vs Expenses Chart is a NewRetirement calculation intended to provide a high level view of your plan. It's based on an average calculation from retirement age through longevity age and a 4% withdrawal from your assets. We are not applying a drawdown of your accounts, these numbers are provided as a means of assessing your standings.

The Income vs Expenses calculation is based on an average calculation from retirement age through longevity age and a 4% withdrawal from your assets.

Your estimated average retirement income is based on your earnings from Work, Passive, Social Security, Annuity, and Pension sources from retirement age to longevity age plus a “safe” 4% savings drawdown rate. This does included any RMDs represented in your plan. The amount is shown in today’s dollars.

Your estimated average retirement expenses are based on the expenses you enter in your plan, under the inflation assumptions in your plan, and the other items we calculate such as income taxes and IRMAA given your plan specifics such as marital status, savings drawdowns, and deductible expenses.


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