PT - JOURNAL ARTICLE AU - Javier Estrada TI - Maximum Withdrawal Rates: <em>An Empirical and Global Perspective</em> AID - 10.3905/jor.2018.2018.1.035 DP - 2018 Jan 31 TA - The Journal of Retirement PG - 57--71 VI - 5 IP - 3 4099 - https://pm-research.com/content/5/3/57.short 4100 - https://pm-research.com/content/5/3/57.full AB - Standard analysis of retirement strategies involves evaluating their failure rate. One of the shortcomings of this approach is that a strategy may have a low failure rate and at the same time leave a large unintended bequest. Maximum withdrawal rates, by definition, exhaust a portfolio by the end of the retirement period, thus leaving no bequest; they can be used both to assess the likelihood of sustaining any chosen level of inflation-adjusted withdrawals, and more generally to evaluate retirement strategies. This article provides a comprehensive historical perspective on maximum withdrawal rates in 21 countries over 115 years with 11 asset allocations ranging from 100% stocks to 100% bonds.TOPICS: Retirement, global, portfolio construction