20% of Retirement Savers Risk Making This Dreadful Mistake
At this point, many people recognize the importance of saving money for retirement. It's become clear that Social Security is facing some financial challenges that could result in benefit cuts. And even if that weren't the case, Social Security is only designed to replace about 40% of the average worker's pre-retirement income. Most seniors need roughly twice that much money to live comfortably, and that's where personal savings come in.
Ideally, you'll enter your senior years with a nice sum of money in your IRA or 401(k) plan. But unfortunately, your nest egg isn't guaranteed to last throughout your retirement. Rather, you'll need to be careful about how much money you withdraw to avoid depleting your savings prematurely.
Recent data, however, reveals that many Americans are ill-informed as to what constitutes a safe retirement plan withdrawal rate. And if you're in a similar boat, you could end up in a real financial crunch come retirement.
Source Fool.com
