The percentage of accumulated savings that a retiree withdraws annually to live on, known in the retirement industry as the “drawdown rate”, has long been a subject of concern. A large proportion of retirees with living annuities are drawing too much each year for their retirement capital to sustain them if they live to their late eighties or early nineties.
To put it bluntly, they are likely to run out of money before running out of life.
A living annuity, for the uninitiated, is a type of pension you
