Ever wonder if your retirement savings will last? Bill Bengen’s 4% rule offers a simple way to plan your withdrawals so you don’t run out of money.

Who is Bill Bengen, anyway? A retired financial adviser who first tested how much retirees can safely withdraw yearly from their savings.

The 4% Rule—What does it mean? Withdraw 4% from your retirement savings in year one, then adjust that amount for inflation every year.

Why 4%? Why not more or less? Bengen’s research shows 4% is a balance between spending enough and not running out of money in 30 years.

Tested through history’s worst markets The 4% rule survived recessions and crashes, proving to be a relatively stable withdrawal guide.

It’s not foolproof for everyone Longer retirements, rising medical bills, or lower returns may mean 4% isn’t safe for you.

Inflation matters more than you think Adjusting withdrawals yearly for inflation keeps your purchasing power steady as prices rise.

Meet Peter: a $100,000 retiree He plans to withdraw $4,000 his first year, following the 4% rule, hoping his money lasts decades.

Peter’s finances face a real test If inflation hits 5%, his investments must earn at least 7% yearly to keep his money lasting 30 years.

What if markets don’t cooperate? In today’s market, Peter’s savings might only last 20 years, highlighting the rule’s limits.

The 4% rule is a starting point, not a guarantee It helps plan withdrawals but must adapt to your unique lifespan, expenses, and market changes.

Takeaway Retirement planning needs flexibility   Use the 4% rule wisely but always revisit and adjust your plan as life and markets evolve.