{"id":63,"date":"2026-07-30T09:23:38","date_gmt":"2026-07-30T09:23:38","guid":{"rendered":"https:\/\/wealth-lab1.com\/?p=63"},"modified":"2026-07-30T09:23:42","modified_gmt":"2026-07-30T09:23:42","slug":"%ec%9d%80%ed%87%b4%ec%9e%90%ea%b8%88-%ec%9d%b8%ec%b6%9c-%ec%88%9c%ec%84%9c%eb%9e%80-%ec%97%b0%ea%b8%88%c2%b7%ed%98%84%ea%b8%88%c2%b7%ed%88%ac%ec%9e%90%ec%9e%90%ec%82%b0%ec%9d%84-%ea%ba%bc%eb%82%b4","status":"publish","type":"post","link":"https:\/\/wealth-lab1.com\/en\/%ec%9d%80%ed%87%b4%ec%9e%90%ea%b8%88-%ec%9d%b8%ec%b6%9c-%ec%88%9c%ec%84%9c%eb%9e%80-%ec%97%b0%ea%b8%88%c2%b7%ed%98%84%ea%b8%88%c2%b7%ed%88%ac%ec%9e%90%ec%9e%90%ec%82%b0%ec%9d%84-%ea%ba%bc%eb%82%b4\/","title":{"rendered":"What Is the Best Order for Withdrawing Retirement Funds? 5 Steps for Using Pensions, Cash, and Investments"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Even if you have saved enough for retirement, your assets may decline faster than expected if you do not have a clear withdrawal plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Public and employer pensions may begin at different times, while you must decide how much to withdraw from cash and investment assets. Retirement accounts may also have different taxes, early withdrawal restrictions, and required distribution rules depending on the country and type of account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start by reviewing\u2014 <a href=\"https:\/\/wealth-lab1.com\/en\/%ec%9d%80%ed%87%b4-%ed%9b%84-%ec%86%8c%eb%93%9d%ec%9d%80-%ec%96%b4%eb%94%94%ec%84%9c-%eb%a7%88%eb%a0%a8%ed%95%a0%ea%b9%8c-%eb%85%b8%ed%9b%84-%ed%98%84%ea%b8%88%ed%9d%90%eb%a6%84%ec%9d%84-%eb%a7%8c\/\">How to Organize Your Retirement Income Sources<\/a>\u2014and then decide the order in which your income and assets will cover your living expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why the Order of Retirement Withdrawals Matters<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before retirement, you pay your living expenses from your salary and save or invest what remains. After retirement, the process is reversed: you must turn the assets you have accumulated into money for living expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Withdrawing money from whichever account is most convenient can create the following problems.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You may be forced to sell investments during a market decline.<\/li>\n\n\n\n<li>You may face taxes or penalties for withdrawing money too early.<\/li>\n\n\n\n<li>You may use your cash too quickly and be left without enough emergency savings.<\/li>\n\n\n\n<li>You may hold investments for too long and run short of money for living expenses.<\/li>\n\n\n\n<li>You may accidentally count the same asset as more than one source of income.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There is no single retirement withdrawal order that works for everyone. Your withdrawal order should reflect your country of residence, pension starting dates, taxes, health, living expenses, and available assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Four Things to Check Before Making Withdrawals<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before withdrawing retirement funds, begin by checking the following four numbers.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Estimated monthly living expenses in retirement<\/li>\n\n\n\n<li>After-tax monthly income from public and employer pensions<\/li>\n\n\n\n<li>The value of your cash and investment assets<\/li>\n\n\n\n<li>The withdrawal eligibility dates and taxes for each account<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">If you have not set your overall target yet, begin with\u2014 <a href=\"https:\/\/wealth-lab1.com\/en\/%ec%9d%80%ed%87%b4-%ec%a4%80%eb%b9%84%eb%8a%94-%ec%96%b8%ec%a0%9c-%ec%8b%9c%ec%9e%91%ed%95%b4%ec%95%bc-%ed%95%a0%ea%b9%8c-%ed%95%84%ec%9a%94%ed%95%9c-%ec%9d%80%ed%87%b4%ec%9e%90%ea%b8%88%ec%9d%84\/\">How to Calculate the Retirement Savings You Need<\/a>\u2014before creating your withdrawal plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 1: Calculate Your Monthly Income Shortfall<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first step is not choosing an asset to withdraw from, but calculating how much money you will be short each month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can calculate your monthly shortfall with the following formula.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monthly shortfall = Expected monthly living expenses \u2212 Stable after-tax monthly income<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your expected monthly living expenses are KRW 2.5 million and your after-tax income from public and employer pensions is KRW 1.8 million, you will need to withdraw KRW 700,000 from cash or investments each month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Withdrawing a large lump sum without making this calculation could leave you holding more cash than necessary or cause your assets to decline faster than expected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 2: Identify Your Stable Pension Income<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Public pensions and employer pensions that provide regular payments can form the foundation of your retirement income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, determine how much of your essential expenses\u2014such as housing, food, and utilities\u2014can be covered by your monthly after-tax pension income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If pension payments do not begin as soon as you retire, you must also plan for the period when that income is unavailable. Some pension systems offer higher monthly payments when you delay claiming, but you should also consider your health and whether you have enough income from other sources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you can choose between a lump sum and regular pension payments, do not compare the amounts alone. Review the payment period, taxes, survivor benefits for your spouse, and the risks of managing the money yourself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 3: Use Cash Assets for Near-Term Living Expenses<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash assets such as savings deposits can cover living expenses without forcing you to sell investments during a market decline.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, keeping all your retirement assets in cash could reduce their purchasing power as prices rise. On the other hand, using all your cash first could leave you unprepared for unexpected expenses such as medical bills or home repairs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, separate the cash used for regular living expenses from the emergency savings reserved for unexpected costs. It is generally better to keep emergency savings separate from the account used to supplement everyday living expenses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 4: Withdraw from Investments According to a Plan<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Any living expenses not covered by cash and pension income can be funded from financial assets such as deposits, bonds, funds, ETFs, and stocks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it is unwise to sell all your investments simply because the market has fallen\u2014or to delay necessary withdrawals indefinitely while waiting for a recovery.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, use this guide on <a href=\"https:\/\/wealth-lab1.com\/en\/%ec%88%9c%ec%9e%90%ec%82%b0%ec%9d%b4%eb%9e%80-%ec%9e%90%ec%82%b0%ea%b3%bc-%eb%b6%80%ec%b1%84%eb%a5%bc-%ea%b3%84%ec%82%b0%ed%95%b4-%ec%9e%ac%eb%ac%b4-%ec%83%81%ed%83%9c%eb%a5%bc-%ec%a0%90%ea%b2%80\/\">After learning how to calculate your current net worth<\/a>\u2014to accurately separate the cash, investments, debts, and retirement accounts you currently hold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then review the following factors before deciding which account to use and how much to withdraw.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your current asset allocation and level of risk<\/li>\n\n\n\n<li>Taxes and fees incurred when selling the asset<\/li>\n\n\n\n<li>Early withdrawal restrictions and required distribution rules<\/li>\n\n\n\n<li>Market conditions and asset prices<\/li>\n\n\n\n<li>Your remaining retirement period and future living expenses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Rather than funding all your living expenses from a single investment, withdraw the amount you need while regularly reviewing your overall asset allocation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 5: Review Taxes and Asset Allocation Every Year<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A retirement withdrawal plan is not something you create once and never revisit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pension income, living expenses, taxes, healthcare costs, and investment values can all change over time. Business or employment income may end, while new sources of income may appear.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, review the following items at least once a year.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How your actual monthly living expenses compare with your estimate<\/li>\n\n\n\n<li>Whether your pension and other income are being received as planned<\/li>\n\n\n\n<li>Whether you have withdrawn too much from your investments<\/li>\n\n\n\n<li>Whether the balance between cash and investments has changed too much<\/li>\n\n\n\n<li>Whether any relevant tax or withdrawal rules have changed<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If your living expenses rise more than expected, consider adjusting your spending or supplementing your income instead of simply increasing withdrawals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Simple Example of a Retirement Withdrawal Order<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If your expected monthly retirement expenses are KRW 2.5 million and your stable after-tax pension income is KRW 1.8 million, your monthly shortfall is KRW 700,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, use pension income to cover part of your essential expenses, then withdraw the remaining KRW 700,000 from the cash reserved for living expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As your cash balance declines, review your investment allocation, market conditions, taxes, and fees, then make planned withdrawals to replenish only the amount you need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep emergency savings for medical bills or home repairs separate from your regular living expenses. If your pension income or living expenses change, recalculate your monthly withdrawal amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This example does not mean that one particular asset should always be used first. It simply illustrates how to create a withdrawal order based on your own income, taxes, and financial situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common Mistakes When Withdrawing Retirement Funds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first mistake is withdrawing a large amount immediately after retirement. Holding a large amount of cash without a clear purpose may lead to unnecessary spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second mistake is failing to check taxes and fees. Even when you withdraw the same amount, the money available to spend may differ depending on the account type and the rules in your country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The third mistake is selling all your investments out of fear during a market decline. If you do not separate living expenses from investment assets in advance, you may repeatedly sell investments at unfavorable times.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fourth mistake is converting every asset into cash because you believe cash is always the safest option. Over a long retirement, inflation can reduce the purchasing power of cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fifth mistake is failing to separate emergency savings from regular living expenses. An unexpected expense could then force you to sell investments quickly or rely on debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Retirement Withdrawal Checklist<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have you calculated your expected monthly living expenses?<\/li>\n\n\n\n<li>Have you confirmed your stable after-tax monthly income?<\/li>\n\n\n\n<li>Have you calculated your monthly income shortfall?<\/li>\n\n\n\n<li>Have you prepared for the period before pension payments begin?<\/li>\n\n\n\n<li>Have you separated cash for living expenses from emergency savings?<\/li>\n\n\n\n<li>Have you checked the taxes and withdrawal restrictions for each account?<\/li>\n\n\n\n<li>Do you have a plan that prevents you from selling all your investments at once?<\/li>\n\n\n\n<li>Can you review your withdrawal amount and asset allocation each year?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A Good Withdrawal Plan Can Help Your Assets Last Longer<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There is no single retirement withdrawal strategy that works for everyone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The important thing is to identify your stable pension income, calculate your monthly shortfall, and then use cash and investments according to a plan. You must also review taxes and withdrawal rules to understand how much money will actually be available to spend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By reviewing your expenses and assets regularly after retirement, you can adjust withdrawals when circumstances change and help your savings last longer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the next article, we will examine the principles and limitations of the \u201c4% withdrawal rule,\u201d which is often used to reduce the risk of spending retirement assets too quickly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u203b This article is provided for general financial education. Pension, tax, and retirement account withdrawal rules vary by country and individual circumstances, so please check the official information provided by the relevant authorities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">References<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Consumer Financial Protection Bureau, Consumer Insights on Managing Funds at the Time of Retirement<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. Department of Labor, Retirement Toolkit<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investor.gov, Retirement Savings<\/p>","protected":false},"excerpt":{"rendered":"<p>\uc740\ud1f4\uc790\uae08\uc744 \ucda9\ubd84\ud788 \ubaa8\uc558\ub354\ub77c\ub3c4 \uaebc\ub0b4 \uc4f0\ub294 \ubc29\ubc95\uc744 \uc815\ud558\uc9c0 \uc54a\uc73c\uba74 \uc608\uc0c1\ubcf4\ub2e4 \ube60\ub974\uac8c \uc790\uc0b0\uc774 \uc904\uc5b4\ub4e4 \uc218 \uc788\uc2b5\ub2c8\ub2e4. \uacf5\uc801\uc5f0\uae08\uacfc \ud1f4\uc9c1\uc5f0\uae08\uc740 \uc2dc\uc791 \uc2dc\uae30\uac00 \ub2e4\ub974\uace0, \ud604\uae08\uacfc [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[15],"tags":[153,136,150,144,145,134,146,151,154,100,139,152],"class_list":["post-63","post","type-post","status-publish","format-standard","hentry","category-retirement","tag-153","tag-136","tag-150","tag-144","tag-145","tag-134","tag-146","tag-151","tag-154","tag-100","tag-139","tag-152"],"_links":{"self":[{"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/posts\/63","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":1,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"predecessor-version":[{"id":64,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/posts\/63\/revisions\/64"}],"wp:attachment":[{"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealth-lab1.com\/en\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}