Is the 4% Retirement Rule Changing For Baby Boomers?

Core Viewpoint - The traditional 4% rule for retirement withdrawals is being revised to a new recommendation of 3.9% for 2026, reflecting changes in inflation and asset-class return assumptions [2][4][5]. Group 1: Withdrawal Rate Changes - Morningstar has updated the safe withdrawal rate from 4% to 3.9%, which offers a 90% probability of funds lasting for 30 years with an equity allocation between 30% and 50% [4][9]. - The adjustment from 4% to 3.9% is a slight change, equating to a difference of $100 in withdrawals for every $100,000 in the investment account [7]. Group 2: Implications for Retirement Planning - The revision indicates that relying solely on simple rules like the 4% rule may not be the most effective strategy for retirement planning [7]. - Retirees who are willing to adjust their spending based on market performance may consider starting withdrawals closer to 6% [9].