The 4% rule has long been the standard for retirement withdrawals but that number may not work for everyone. The focus for this story is on how someone who’s approaching retirement or has recently retired can determine how much they should be withdrawing their first and subsequent years in retirement. What’s the biggest flaw with the 4% rule? What’s more important for determining an ideal withdrawal rate: total savings or life expectancy? How does Social Security factor into the decision when deciding how much to withdraw from taxable or nontaxable accounts? What about inflation, investment fees and taxes? How can retirees account for their impact? What are a retiree’s options when their calculated withdrawal rate still leaves them coming up short?
How to Calculate Your Ideal Retirement Withdrawal Rate