Why Guaranteed Income Is Replacing the 4% Rule

For decades, the “4% rule” has been the shorthand for the conventional wisdom of retirement income planning: Withdraw 4% of your savings in the first year, then adjust for inflation each year after. However, new research is revealing what many in the financial services industry have long suspected: this rule no longer holds true for all scenarios.

Key takeaways

1. 1. The 4% rule may need to be updated as, in today’s conditions, may carry considerable failure rates as retirees age.
   2. Annuities combined with withdrawal strategies have the opportunity to deliver stronger, more reliable outcomes across savings levels.
   3. Financial professionals who lead with guaranteed income strategies can help clients replace uncertainty with retirement confidence.