When you're ready to retire, how can you be sure you'll have enough money to last? And what's the best way to withdraw your savings over the years?
Steve Vernon, consulting research scholar at the Stanford Center on Longevity, set out to answer these questions by collaborating with the Society of Actuaries (SOA) on a research project: "How to 'Pensionize' Any IRA or 401(k) Plan." "What we wanted to do was identify a strategy that middle-income workers could use that's fairly straightforward and that they could do on their own," Vernon tells CNBC Make It.
After analyzing 292 different retirement income strategies, the research team identified the best way for most people to withdraw their money in retirement. They call it the "spend safely in retirement" strategy.
"This is a strategy that people can use to decide if they've got enough money to retire," says Vernon. "But also, a lot of people are uncertain as to when they'll retire and if they should work part-time for a while, so this strategy can help them think through those questions."