DURING & POST
Decumulation strategies
We face a lot of pressure over not saving enough for retirement. But equally
important is how and when we access the money we have saved.
The process of unlocking that money is
called decumulation, sometimes referred to as
drawdown. There is no magic formula to calculate
retirement funding. It depends on how long you will
live, how much you will spend – on both the
essentials and the luxuries – and the impact of
inflation throughout your retirement journey.
The longer that journey – even continuing beyond
your death if you are planning to pass on wealth to
future generations – the more risk you can take,
continually growing your fund without eroding capital.
Once you have an approximate budget for how
much you may need, and – short of a crystal ball –
estimate how long you may live, you can start to
devise a suitable strategy. Better to think about it
well before you actually need to – perhaps five or
even 10 years off planned retirement.
A diversified portfolio will give you a r