Retirement income scorecard: Systematic withdrawals

This concise explanation by Steve Vernon, Research Scholar for the Stanford Center on Longevity, of one option for withdrawing funds in retirement is clearly written and contains helpful charts. Check the MoneyWatch website for info on the 3 methods of generating a retirement paycheck. Vernon cites research by highly respected researcher Wade Pfau who cautions that the 4% withdrawal guideline is based on a period in US investment history that is unlikely to be repeated in the future.  What is not mentioned is the option to delay claiming Social Security benefits until age 70 which allows higher withdrawals from personal assets. Keep in mind the 3 stages of retirement described by Michael K. Stein: the initial “go-go” phase when retirees are traveling and recreating and may be spending more than they did while working. Next is the “slow-go” phase; think: never want to deal with TSA again, which is followed by the “no-go” phase when health limits activities. This last phase can be low cost (just want to tinker in my garden or garage or sit on the porch and watch the world go by) or very expensive with long term care costs. I highly recommend Vernon’s series of articles on retirement income (and other financial topics. Check them out: http://www.cbsnews.com/8301-505146_162-57592461/retirement-income-scorecard-systematic-withdrawals/