It May Be Time to Rethink the 4% Retirement Rule

There are two rules of thumb that many people have traditionally followed to guide their retirement savings: The 80% rule and the 4% rule. The 80% rule focuses on how much you'll need yearly, advising people to have 80% of their pre-retirement yearly income in retirement to maintain their lifestyle. The idea behind the 4% rule is that retirees could plan to withdraw 4% of their retirement savings yearly for 30 years (adjusting for inflation) without outliving their savings.