20 Nov Is the 4% rule still a thing for withdrawing retirement money?

Q. Is the 4% rule for taking money from retirement accounts still what people do? What else do we need to think about before we retire?
— Investor

A. That’s a great question.

The 4% rule suggested that taking a 4% distribution from your retirement in your first year, then adjusting that number for inflation in the subsequent years, would give you a steady income in retirement without running out of money.

The 4% rule is still talked about, but it’s no longer treated as a universal guideline, said Bill Connington of Connington Wealth Management in Fairfield.

“Many planners now see it as a starting point rather than a rule because markets, interest rates, longevity, and retirement lifestyles have changed.,” he said. “People are living longer, healthcare costs and long-term care are growing, and bond yields have been lower for most of the past two decades.”

He said investors need to look more closely at their expected monthly spending in retirement including budget items like more travel, moving to a different home and other costs.

Also, when you take Social Security and what kinds of retirement accounts you have — Roth or traditional — are also key considerations, he said/

“So what every investor needs to do is look at planning for retirement and where your income will come from and then that will determine how much you need to draw on your assets in relation to the old standard 4% rule,” he said.Email your questions to .

This story was originally published in November 2025.

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