What is Decumulation?

During your working life, later-life planning involves accumulating assets in a pension or other savings account in order to use it when you retire. When you stop working, you enter a new phase – known as decumulation – where you liquidate and spend these assets to pay for your retirement. There are now more choices than ever around how you decumulate your assets and the best manner and order to do this will depend on your circumstances, wealth and attitude to risk.

Related terms
What is an Accrual Rate
What is Consolidation