Ultra-low interest rates and QE 'broke 4% drawdown rule'

James Phillips
clock • 2 min read

The 4% rule of thumb often used to define a sustainable approach for drawdown in retirement is no longer fit for purpose due to prevailing and sustained market conditions, says Lane Clark & Peacock (LCP).

The "nastiest, hardest problem in finance" has become even tougher in a world of zero - or negative - real interest rates and quantitative easing (QE), the consultancy said, while the two-decade-ol...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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