Most Americans Lack Plans for Spending Retirement Savings, Creating 'Decumulation' Challenge
A new survey finds that only 29% of workers age 55 and older have a plan for withdrawing money from retirement accounts, highlighting a widespread gap in retirement planning. The challenge of "decumulation"—strategically spending down assets in retirement—is largely overlooked despite being as important as saving for retirement. This planning gap may lead some retirees to underspend and die with substantial assets, while others face anxiety about outliving their savings.
Research from Corebridge Financial reveals that most Americans focus heavily on accumulating retirement savings but neglect planning for how to spend those assets once they stop working. Only 31% of Americans understand the term "decumulation," and just 29% of workers age 55 and older have a withdrawal strategy in place. The Employee Benefit Research Institute found that one-third of retirees still had 100% or more of their initial retirement assets by their mid-80s, suggesting unnecessary underspending driven by fear of outliving their money. Common withdrawal strategies like the "4% rule" serve as starting points but don't account for market volatility, taxes, and individual circumstances. Experts increasingly recommend building guaranteed income streams through annuities and Social Security to cover essential expenses, particularly as younger generations lack traditional pensions that older retirees relied upon.
What's missing
The survey was conducted by Corebridge Financial, a company that sells retirement and insurance products, creating a potential conflict of interest in how the research findings are presented and which solutions are emphasized. Additionally, the article focuses primarily on affluent Americans with $100,000+ in investable assets, which may not represent the retirement challenges of middle-income or lower-income retirees.
How coverage differed
CBS News presents this as a neutral financial planning issue, citing research from Corebridge Financial (a financial services company with potential interest in promoting annuities and planning services). The framing emphasizes both the problem of underspending and the solution of professional planning, which could subtly favor financial industry products.
What different sources said
- CBS NewsCenter
Here's the retirement challenge nobody talks about
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