Four Threats to the Distribution Phase of Retirement

Keep challenges such as inflation, market volatility and more in mind when it’s time for you to shift from saving for retirement to spending.

A pair of mountain climbers carefully make their way down a mountain.
(Image credit: Getty Images)

When discussing the difference between the accumulation and distribution phases of retirement, the classic metaphor used by financial professionals is an ascent up a mountain, with the climb being arduous and the descent being an easy, measured slide down a steep slope. While this metaphor does provide a useful mental image for retirees, it also implies (wrongly) that the trip down the mountain is effortless.

In reality, the distribution phase of retirement can be the most challenging, especially if the retiree hasn't taken into account how they will spend their money. In this article, we'll explore how to make the distribution phase of retirement work for you and discuss points to consider with your financial planner to ensure a high-quality retirement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Cliff Ambrose
Founder, Financial Adviser, Apex Wealth

Cliff embarked on his professional journey in the financial services sector right after obtaining a degree in Finance and Economics from Saint Anselm College. He commenced his career as a Financial Adviser at MetLife, where he excelled and was awarded the prestigious Super Starter Award and Leaders Club production accolade in his first year. Cliff's early years in the insurance-broker dealer realm at MetLife and New England Financial honed his skills and transformed him into a consummate expert in the insurance space.