The 4% Rule Under Siege: Why Retirees Must Rethink Their Nest Egg Strategy Now

For decades, the so-called “4% rule” has been the bedrock of retirement planning—a simple guideline dictating that retirees can safely withdraw 4% of their portfolio each year without running out of money. But as America faces unprecedented economic headwinds and market shifts, this once-sacred standard is showing serious cracks.Why the Golden Rule Is Losing Its ShineMorningstar’s latest research, led by portfolio strategist Amy Arnott, delivers a sobering message: the safe withdrawal rate for today’s retirees is now slightly lower than last year. This is no trivial adjustment—it reflects deep changes in market fundamentals that directly threaten American retirees’ financial security.Historically,...