Accumulation vs. Decumulation

Scott Sullivan |
Categories
Retirement Planning
RISA
financial planning
Retirement Income

One Retirement Journey, Two Key Phases

Saving Is Just One Side of the Story

Most people think about retirement as a finish line—save enough, then you’re done. But retirement is better understood as a journey in two phases:

  • Accumulation: Your working years, when you’re saving.

  • Decumulation: Your retirement years, when you begin spending from what you’ve built.

Traditional planning often separates these two. You hear things like the “4% Rule” for spending, which assumes you withdraw 4% of your savings each year in retirement. But that rule doesn’t always account for market ups and downs—or how you actually feel about spending your money.

A More Holistic Way to Plan

Rather than only focusing on withdrawal strategies, we think it’s better to start with an important question:

How much should I be saving now to support the lifestyle I want later?

That’s the idea behind a safe savings rate—a steady percentage of your income saved over time to support your future. This approach helps connect the dots between your working years and your retirement years so the plan feels more natural and less stressful.

Your Preferences Matter, Too

Of course, it’s not just about math. It’s also about you—your personality, your comfort with risk, and how much flexibility you want.

That’s where the RISA® Profile comes in.

The RISA (Retirement Income Style Awareness) framework helps us understand your preferences across two key dimensions:

  • Probability-Based vs. Safety-First: Do you prefer market growth and flexibility, or do you value guaranteed income and predictability?
     

  • Optionality vs. Commitment: Do you want to keep your options open, or are you comfortable locking in reliable income streams?

By mapping your preferences, we can design a retirement income strategy that fits you—not a generic rule.

Let’s Build the Right Plan for You

If you’d like to explore how your savings and spending strategies fit together—or learn your own RISA® Profile—we’d love to talk.

Click here to schedule a 15-minute Retirement Fit Call.

We’ll help you feel more confident about where you’re going—and how you’ll get there.