Retirement Factor: Here's how to make work 4% retirement rule - The Santa Clarita Valley ProclaimerRetirement Factor: Here's how to make work 4% retirement rule - The Santa Clarita Valley Proclaimer
Here are several ways to make retirement withdrawals even more sustainable
The 4% rule has also come under fire as of late, as the concept was developed when bonds were yielding far more than they do today
This has led financial planning experts to question whether the 4% rule would hold up in today's low-interest, high-inflation, and low-expected-return
Consider a variables pending strategy: Instead of taking 4% from your savings in years when the market experiences a downturn
Skip the inflation adjustment: While this might seem unthinkable in a year when we've experienced decades-high inflation
Focus on guaranteed income: Retirement fixtures like pension plans, Social Security, and certain annuity types can act as incredibly effective
Nonetheless, retirees and pre-retirees alike will need to develop strategies to make their retirement savings last even longer than expected
The 4% rule was developed over a period of decades and accounted for numerous negative financial system shocks