Motley Fool Money Enjoying a Richer Retirement, and an IRA Scam
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Oct 11, 2025 David Blanchett, managing director and head of retirement research at PGIM DC Solutions, shares insights on retirement spending and withdrawal strategies. He reveals that many retirees may actually spend less than expected and suggests that the common 4% withdrawal rule may be too conservative. They discuss the growing issue of IRA scams and how to protect your investments. Additionally, Blanchett highlights the importance of guaranteed lifetime income, which can enhance retirees' willingness to spend and improve retirement satisfaction.
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Prevent ACATS IRA Transfer Scams
- Turn on transfer notifications, enable two-factor authentication, and ask your broker about account locking to prevent ACATS fraud.
- Guard account numbers, shred statements, practice email hygiene, and open any mail from financial firms promptly.
Save A Portion Of Raises To Catch Up
- When you get raises, save roughly a third of the raise to help yourself catch up and spend the rest cautiously.
- Increase your savings rate as income grows to avoid needing much larger savings later.
Retiree Spending Often Falls Short Of Inflation
- Retiree spending typically drops only about 5% at retirement rather than rising with inflation each year.
- Empirical evidence shows spending often grows less than inflation, freeing money earlier in retirement.