BacktestFolio · Glossary
Decumulation
In plain language
After years of contributions comes the moment of withdrawal — this is the decumulation phase. The challenges change completely: what matters is not just how much you earned but how much and how you withdraw to avoid depleting capital before your planning horizon ends.
Technical definition
Phase in which accumulated wealth is gradually consumed through periodic withdrawals, typically during retirement. It is the opposite of the accumulation phase (DCA, systematic investing) and requires different risk management.