My parents are now well into their retirement (Mom’s 76, Dad’s 81). They are likely to move into an independent-living retirement community within the next 6-9 months, and within a couple of years they are likely to transition to assisted living. We kids are trying to help them figure out what they can afford based on their current assets and income streams.
The conventional wisdom is (or at least was, until recently) that when you retire, you should plan to draw down your nest egg at a rate of 4% per year; supposedly this would give a very low probability of you outliving your savings. That’s assuming you retire some time in your 60s. Given that my parents are now much older than that, it seems safe to advocate a higher drawdown rate.
What’s a safe upper bound for annual drawdown for them?