"Yields on government bonds are well below historical averages [which] will have a significant impact for retirees, who tend to invest heavily in bonds ... [This paper examines] a model that takes into account current bond yields and allows them to 'drift' toward a higher value during retirement ... [A] retiree who wants a 90% probability of achieving a retirement income goal with a 30-year time horizon and a 40% equity portfolio would only have an initial withdrawal rate of 2.8%. Such a low withdrawal rate would require 42.9% more savings if the retiree wanted to pull the same dollar value out of the portfolio annually as he or she would get with a 4% withdrawal rate from a smaller portfolio."  MORE >>