Bill Bengen Lifts Retirement Withdrawal Rule to 4.7% From 4% After 30 Years

5 articles · Updated · USA TODAY · May 17

Bengen now says new retirees can start by withdrawing 4.7% of savings in year one, up from the long-standing 4% rule he introduced in 1994.
The revision reflects broader portfolio assumptions—55% stocks, 40% bonds and 5% cash across seven asset classes—plus strong recent stock-market returns that improved the math.
Bengen said his original rule was based on a 30-year retirement and worst-case historical scenarios; he used 4.5% when he retired in 2013 and is now spending 4.9% annually.
The rule still serves as a common planning benchmark, but advisers say retirees should adjust spending over time for inflation, market performance and changing needs rather than treat it as static.
Its limits remain clear for smaller nest eggs: the typical U.S. household aged 55 to 65 had about $185,000 saved in 2022, which would yield only $7,400 a year under the old 4% rule.

The 4% retirement rule is now 4.7%. But in today's volatile market, is any fixed rule truly safe for retirees?

As the 'safe' spending rate rises to 4.7%, why are some experts now urging retirees to withdraw even less?