Should I Use Systematic Withdrawal as a Major Source of My Pension Income in Retirement?

Systematic withdrawal can be used only with Teachers Insurance and Annuity Association-College Retirement Equities Fund’s (TIAA-CREF) variable annuity accounts, not TIAA Traditional. This approach to withdrawal appeals to many retirees because it allows them maximum control of their assets. Retirees can choose their asset allocations, their investments, and their withdrawal amounts, as long as they comply with the Internal Revenue Service (IRS) minimum distribution requirement, when they reach 70.5. Therein lies the danger. Unless they choose a safe withdrawal rate, they risk going broke. If they lack an understanding of investments and withdrawal strategies, they are further at risk.