When I compare strategies, the strategy that resets the withdrawal rate every five years always has a 100% success rate even though the final income is lower than I need. Why?
Whether a strategy succeeds or fails depends upon whether you have the desired income throughout retirement. If you select this strategy, you are willing to live with the rule which includes buying an annuity at age 85, even though this may cause your income to drop. The rule is designed to have some income to last your lifetime. By definition, this strategy is successful. However, should you create your own custom strategy trying to mimic this strategy, it will very likely have a low success rate; because at age 85 there will probably be a big drop in income as you use up the original 85% of your assets and purchase an annuity with the remainder.
