(This article was published in LiveMint on August 30, 2022 and can be accessed from the link https://www.livemint.com/money/personal-finance/get-ready-for-a-change-in-direct-mf-platforms-11661795580130.html)
Safe Withdrawal Rates ≠ Annual Withdrawal Rate: Clarifying a Common Misunderstanding
A frequent source of confusion in retirement research is the interpretation of the safe withdrawal rate (SWR). Many assume that an SWR (say 3% or 4%) represents the proportion of the portfolio withdrawn each year of retirement. This is not the case. The SWR refers to...





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