Financial Industry’s 4% Rule Does Not Work For Most Americans:
New PwC US Report Shows Need for New Planning Approach that Reflects Retirement Realities
BOSTON, MA, April 15, 2015 – The financial industry’s 4% rule, which has been used historically as a guideline for asset withdrawals in retirement, may work for the wealthy, but not most Americans, according to a new PwC US report, which will be published in the upcoming Spring 2015 issue of the Retirement Income Industry Association® (RIIA®)’s Retirement Management Journal®.
The report, based on findings from PwC’s Retirement Income Model, shows that following the 4% rule will lead most retirees to use up savings earlier than planned or to significant reductions in wealth for the affluent. The report highlights the impact of wealth, sequence of returns and consumption, and unplanned financial shocks on 4% rule-based retirement outcomes.
Mark Your Calendar
THE 2015 FALL CONFERENCE & 10TH ANNIVERSARY GALA
Sept. 16-18, 2015 | Indianapolis
RIIA® will mark its 10th anniversary in 2015 in the same spirit that animated us in 2005, with unique events that reflect our “View Across the Silos”℠ positioning to help clients achieve better retirement outcomes.
As we reach this important milestone, I am pleased that RIIA’s client-centric approach has been validated by the increasing adoption of our principles, the differentiation they provide to member companies and advisors, and improved client outcomes through the financial crisis.
Over the last ten years, RIIA’s leadership team, along with thought-leaders at companies, advisors and academia, have contributed to our unique Body of Knowledge, which is the basis of the RMA® curriculum. The core conceptual signposts of “The Client Diagnostic Kit”SM (including “Measures of Fundedness”SM and “The Household Balance Sheet View”SM) and “The Retirement Allocations”SM underscore our client-centric approach. “The RMA® Toolbox”SM and the “RMA® Practice Management” SM signposts reflect our commitment to comprehensive implementation and helping advisors leverage RIIA principles to build their businesses.
As we look forward, our anniversary provides an opportunity to bring members and non-members together in new ways to discuss and build on RIIA’s body of knowledge.
In the Spring of 2015, as the first of several anniversary events that will be announced over time, we will launch our first RIIA Advisor Forum, a week-long event that integrates our traditional Conference Programs with the RMA Boot Camps. The Advisor Forum will offer attendees the opportunity to audit class presentations, deliver guest speaker presentations, attend break-out seminars and join Award presentations as well as small group dinners. This event, and the others like it later in the year, are by invitation only.
For details on the 2015 Advisor Forum Week at Salem State University (SSU), visit the Events page.
SSU – Retirement Management Analyst (RMA®) – Study Group
Date(s): Next group starting Fridays February 13, at 4:00 pm.
Advisor Resources on Amazon
Dirk Cotton Wins 2015 RIIA® Practitioner Thought Leadership Award
Dirk Cotton Wins 2015 RIIA® Practitioner Thought Leadership Award for Contributions to Retirement Body of Knowledge.
The new Retirement Management Journal® paper provides new perspective on Sequence of Return Risk and Path Dependence of Portfolio Outcomes. View Press Release
The Spring issue of RMJ® is available on Amazon: The Retirement Management Journal: Vol. 5, No. 1, Practitioner Peer Review Committee Issue (Volume 5)
The pdf version is available to members in the RIIA® member area.