That is the average number of years we are living as retirees. As many as 43% of current retirees think they can pull 10% a year from their retirement accounts annually. That is a great plan only if you know you will live less than 10 years into retirement. If your family history dictates a longer life than that, you might want to check out your son’s guest room if this is your withdrawal plan. You need to look at a lower withdrawal annually so you do not outlive your retirement nest egg.
Another notion that has not proven to be correct is that you will spend less in retirement. When I am running a retirement plan for my clients, I look at their current living expenses and add 3% annually for inflation. I do not cut their expenses back. After 32 yrs. in business, I have learned that retirees generally do not spend less than in their working years.

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