What happens if an investor spends more or less than the annual sample spend-down amount?
SAMPLE SPENDING SCENARIOS
SAMPLE SPEND-DOWN AMOUNT
SPEND MORE
SPEND LESS
If you spend less than the annual sample spend-down amount — for example, a fixed rate of 4% — you may have a positive account balance 35 years after retirement date which could mean you’ve limited your lifestyle choices in retirement.
If you spend more than the annual sample spend-down amount each year — for example, a fixed rate of 6% — your assets in the Fund should be at or close to zero prior to 35 years after retirement date.
If you follow the annual sample spend-down amount each year, your assetsin the Fund should be at or close to zero 35 years after retirement date.
Annual distribution value ($)
Year 35
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