The famous 4% rule says you can spend 4% of your savings in the first year of retirement and raise it with inflation. It is a good start and a poor finish.
What the rule misses
- Your pension and Social Security, which cover part of your spending
- Taxes, which depend on which account you draw from
- The years you spend more — the first ten, usually
The right number is not a percentage. It is your spending, year by year, minus the income you already have.
The number we use
We build your spending by decade, subtract guaranteed income, and test the gap against thousands of market paths. The result is a date and a monthly paycheck you can trust.
What to do this month
Write down what you spend in a normal month. That single number is the start of every good plan.
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