Definition
The shrinking in value of retirement asset , resulting in the reduction of amount available for retirement wealth decumulation.
Wealth evaporation usually occurs as a result of stock market reduction and other market conditions that reduces the purchasing power of the dollar, as well as reduce the market value of property .
Individuals often experience an evaporation in retirement wealth during bear markets, as their retirement portfolios shrink in value. Once such example is the bear market of the later 1990’s to the early 2000’s, where the retirement account balance of many participants shrunk in value.
Referring Cite
N/A