Spend-down plan
Spending your savings on purpose over a chosen horizon instead of living only on returns.
It allows a higher budget than a fixed withdrawal rule, with pensions as the lifelong floor. It needs a margin for a long life and care costs.
Tools that use it
Related terms
- Pension-fund pensionA lifelong monthly payment from the pension fund, set by the balance and the conversion rate.
- GuardrailsA withdrawal method that spends a little less after bad years and a little more after good ones, within set limits.
- Safe withdrawal rateThe share of your savings you can spend in the first year of retirement, then adjust for inflation, without running out.
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Mindset
Rent for life, die with zero: spending your money on purpose
Most savers end life with far more than they needed. Why a plan that spends down on purpose can pay for more living, and the risks that stop you going to zero.