As there’s no way to predict investment returns, inflation rates or longevity, the fear of running out of money in retirement is a real concern for most seniors. To help alleviate this fear, financial advisors often recommend that seniors withdraw no more than 4% of their retirement funds annually, adjusted for inflation. The idea is that at that rate of withdrawal, there’s a very high probability that your money will last for at least 30 years in retirement.
But for 2026 and beyond, experts have begun suggesting that a withdrawal rate of 4.7% might be more appropriate. Here’s the story behind the new recommendation and what it might mean for your retirement spending.
