Why the 4% Safe Withdrawal is Flawed..
..It was never guaranteed.
The original research reflected a 5% likelihood of portfolio ruin. In 2026, today's reports now reflect a 10% likelihood of portfolio ruin. It has not gotten easier, in fact it has become much more difficult.
- Facts: When your portfolio runs out of money, you run out of income.
- Facts: Clients can insure against retirement income ruin.
Understand how to maximize retirement income with safe withdrawal updates and dynamic strategies.
While the 4% rule is a widely accepted guideline for a safe withdrawal rate, our latest research indicates that retirees can withdraw as much as 3.9% in 2026—though they may be able to withdraw more depending on their strategies and spending/ending ratios.
So how can investors determine the right approach for their retirement goals?
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Insurance Overlays and Retirement Spending: The Case of Protected Lifetime Income
KEY TAKEAWAYS
- Insurance overlays can be effective at increasing retirement spending.
- They do not require investors to forgo control of their assets.
- Insurance overlays may pair well with tax-aware investments.