Depletion Rate

Depletion rate is the pace at which you draw down money from a retirement plan. A key part of managing your finances in retirement is trying to make your resources last for the remainder of your life at least.

Measuring your depletion rate helps you assess whether you are taking money out too quickly. Caution must be applied in planning your depletion rate because you can’t be sure of how long your resources will need to last.