How Much Can I Spend in Retirement? by Wade D Pfau

How Much Can I Spend in Retirement? addresses the critical question of how much you can spend in retirement, a vital concern for those approaching this life stage. The book delves into the challenges of converting savings into sustainable income over an increasingly lengthy retirement period, while managing risks such as market volatility, longevity, and spending shocks. It focuses on the concept of sustainable spending from investments, a key component of any retirement plan. The author explains the findings of extensive financial planning research, including the widely-known 4 percent rule, and explores its applicability and limitations in today's economic environment. The book also analyzes various spending strategies and the balance between frugality and the risk of depleting assets. It is particularly relevant for those planning to fund their retirements using an investment portfolio and those hesitant about using income annuities or other insurance products. The author emphasizes a 'probability-based' approach to retirement planning, providing practical insights and strategies for creating a sustainable retirement spending plan.

Reviews

Early-Retirement.org · 2025-07-12

comprehensive 4.20

This in-depth review highlights the book's focus on a probability-based philosophy for retirement spending. It is praised for its thorough analysis and practical insights.

The reviewer provides an in-depth analysis of the book, focusing on Pfau's probability-based philosophy for retirement spending. They appreciate the thorough study and practical insights offered, making it a valuable resource for anyone planning their retirement. The book is seen as a comprehensive guide to sustainable spending from investment portfolios, providing a clear understanding of the various factors involved. The reviewer also notes that the book is well-researched and offers a balanced approach to retirement planning.

Quick quotes

This is an in-depth review of what Pfau terms the “probability-based” philosophy – that is, spending from a diversified investment portfolio.

The book offers a thorough analysis of sustainable spending in retirement, making it a valuable resource for planners and individuals alike.

Pfau’s approach provides a clear understanding of the complexities involved in retirement finance.

FP Hawaii · 2021-01-07

essential 4.50

This book is a must-read for anyone planning their retirement, offering practical advice on balancing spending and savings. It provides a comprehensive guide to navigating the complexities of retirement finance.

The reviewer highly recommends this book for both financial planners and individuals planning their retirement. They appreciate the practical advice and the balanced approach to spending and saving. The book is seen as a valuable resource for understanding the intricacies of retirement finance, offering a clear and structured guide to making informed decisions. The reviewer also notes that the book is well-written and easy to understand, making it accessible to a wide audience.

Quick quotes

This book is, in my opinion, a “must-read” for all financial planners and for any lay person with a serious interest in retirement planning.

Dr. Pfau’s approach is both practical and insightful, providing a clear roadmap for retirement spending.

The book offers a comprehensive guide to navigating the complexities of retirement finance.

Goodreads · 2017-10-17

practical 3.80

This book guides readers through determining a reasonable spending rate for retirement, striking a balance between enjoyment and financial security. It is praised for its practical advice and clear guidance.

The reviewer highlights the book's practical advice on determining a reasonable spending rate for retirement. They appreciate the balanced approach to enjoying retirement while ensuring financial security. The book is seen as a valuable guide for anyone planning their retirement, offering clear and actionable insights. The reviewer also notes that the book is well-written and easy to understand, making it accessible to a wide audience. The practical advice and clear guidance provided are particularly appreciated, making it a useful resource for retirement planning.

Quick quotes

This book guides you through the process of determining a reasonable spending rate that will strike the balance between enjoying your early retirement years.

It offers practical advice and clear guidance on retirement planning, making it a valuable resource for anyone planning their future.

The book is well-written and easy to understand, providing a comprehensive guide to retirement finance.

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