Savings & Retirement
There’s A Little Bit of Good News for Americans Close to Retirement
A new Morningstar report finds the outlook for stock and bond returns is improving.
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Things are looking up for people who are close to retirement, according to a Morningstar report published Monday.
With the outlook improving for stocks and bonds next year, the percentage of a nest egg that retirees can safely start withdrawing from savings has increased to 3.8%, up from 3.3% in 2021, the report said. That may seem strange with inflation still high, recession fears growing, and many portfolios down double-digits this year. But with the market battered, there are better odds that future asset returns will improve, feeding into the rationale for a higher withdrawal rate.