Looking Beyond the 4 Percent Rule: Modern Retirement-Drawdown Strategies

The 4 percent rule may be outdated—consider guardrails, buckets, or income floors to protect your retirement.

Retirement isn’t one-size-fits-all—use guardrails, buckets, or guaranteed income to stay secure. Pressmaster/Shutterstock

If you’re nearing retirement, you’ve probably heard of the 4 percent rule. It’s a popular retirement savings withdrawal strategy.

It states you should withdraw 4 percent of your savings in the first year of retirement. Then, you adjust that dollar amount for inflation each following year. And the theory is that this should help your savings last about 30 years.