Explainer / Retirement / North America
Retirement Income: Sequence Risk in Plain English
Published 2026-09-15 · BLOOMBERG WEALTH Research Desk
A beginner-friendly explanation of withdrawal order, sequence risk, income floors and longevity planning.
Executive brief
Two portfolios with the same average return can produce different outcomes when withdrawals occur. Selling after early losses leaves less capital for a later recovery.
Questions for due diligence
Stress-test an early drawdown alongside inflation and a longer retirement. Compare flexible spending rules and reliable income before choosing a withdrawal plan.
Scenario framework
- Base case: review the stated assumptions for retirement and record which evidence would change the assessment.
- Stress case: consider weaker returns, reduced liquidity and higher costs together. An illustrative scenario is not a forecast.
Primary sources
Educational research brief. Scenarios are not forecasts or personalized advice. Follow the primary references for current data and methodology.