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There are a lot of ways to calculate how much money you need to save to retire. Once you reach retirement, though, a lot can influence how long that money lasts, including the year you retire.
As personal finance site One Cent At a Time explains, when you retire can have a huge impact on how long your savings last. Even if you retire with the same amount of money and withdraw it at the same rate as someone else, if you start in different years, one of you could end up with a lot more money at the end.
Reason - Sequence - Return - Risk - Say
The reason for this is what’s known as the sequence of return risk. Say three portfolios average 10% every year. There will still be ups and downs each year. If person A starts retirement on an up year and withdraws very little money, they’ll have more in...
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