decumulation

Definition

The process of withdrawing or spending down accumulated retirement savings over the course of one's retirement years.

Etymology

The term is a modern compound formed by adding the prefix 'de-', meaning 'off' or 'away,' to 'accumulation,' which stems from the Latin 'accumulare' (to heap up).

In the news

The article highlights decumulation as the next major challenge for defined contribution plans, moving beyond the industry's prior focus on how to save money for retirement.

DOL’s 401(k) alternatives rule likely to be finalized — but courts may decide how it’s applied

Pensions & Investments

Related words