Developing a withdrawal plan for retirement should be simple, transparent and reliable. Many withdrawal calculators available in the marketplace today often fail to accurately account for the three main risks affecting retirees’ retirement savings: longevity, broad market declines, and inflation. As a result, Milliman’s Financial Risk Management Practice developed the world’s first sustainable withdrawal tool, designed to help those nearing or in retirement identify a customized withdrawal rate, address the threats of broad market declines, and generate a more reliable lifetime income.
The tool utilizes the Milliman Managed Risk Strategy™, an intelligent risk management strategy that provides retirees with the same risk management techniques used by major financial institutions around the world. The strategy is widely used at the institutional level, as well as in mutual funds, target-datefunds, variable insurance trusts and collective investment trusts.