It works like this:
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Before retirement most of your money comes from your salary. Your money goes out to pay taxes, savings, loan payments and living expenses.
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After retirement your social security and pensions replace your salary but probably don't cover all your expenses.
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To make up the difference, you sell a portion of the investments you've built up with your savings.
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If your investments last until the end of your plan, then your plan works.
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If they don't, then your plan doesn't work and you need to adjust some of your decisions