Cut Your Retirement Spending Now, Says Creator of the 4% Rule

For decades, retirees have relied on the 4% rule to determine how much was safe to spend in retirement. Now, the rule’s inventor says current market conditions may require an even more conservative approach.

The combination of 8.5% inflation with high stock and bond market valuations makes it difficult to forecast whether the standard playbook will work for recent retirees, said retired financial planner Bill Bengen, who first devised the 4% rule in 1994.