Schwab Study Shows VIX at 23.75 Sparks Anxiety Among $3M Savers
Schwab’s 401(k) research shows savers with $3M portfolios remain anxious despite a 4% withdrawal generating $120,000 annually, well above the $1.46M median comfort threshold. High market volatility, with VIX at 23.75 (+31.9%), and Core PCE inflation in the 90th percentile heighten drawdown fears.
1. Schwab 401(k) Research Findings
Schwab’s latest 401(k) survey finds that even savers with $3M portfolios report low confidence in retirement readiness, reflecting persistent anxiety around drawdown stages.
2. Retirement Income Benchmarks
At a 4% withdrawal rate, a $3M portfolio generates $120,000 pre-tax annually, compared with a $1.46M comfort benchmark and a median retirement savings below $300,000.
3. Psychological Drawdown Anxiety
Transition from accumulation to spending introduces fear of irreversible spending decisions, with nearly half of retirees spending less than planned to avoid declines in their portfolio balance.
4. Volatility and Inflation Pressures
Elevated VIX at 23.75 (+31.9%) and Core PCE inflation at the 90th percentile exacerbate saver concerns by underscoring market swings and purchasing-power risks during retirement drawdown.