It may not seem like much, but by increasing the inflation-adjusted draw rate from 4 to 5%, your donor will shorten the number of years their retirement funds will last. Typically, withdrawal rates above 4% increase the chances senior friends will run out of money too soon. Meanwhile over 25 years, just a 3% annual inflation rate will impact seniors by lowering their buying power of their savings by 50%. At age 65, there is at least a 50% chance that at least one member of a healthy couple will live to be 92 years of age.
Part of a series: Keep in Mind, tips from the president of YoungAssociates, micro-sized nuggets to startle, energize, and boost your thinking in regard to development. If you enjoy this information and don’t want to miss future articles, you can subscribe to receive our fundraising articles via email.