A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Safe Withdrawal RateThe percentage of your savings you can spend each year with low risk of running out of money during retirement.
- 4% RuleA guideline suggesting you can withdraw four percent of your savings the first year of retirement, adjusting for inflation after.
- Nest EggThe total pool of money and investments you build up to fund your living expenses throughout retirement.
- Retirement IncomeThe money you live on after you stop working, drawn from savings, Social Security, pensions, and other sources.
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
- Longevity RiskThe chance that you outlive your retirement savings because you live longer than your money was planned to last.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.