Timofey Zadvornov from Getty Images and Kaboompics.com from Pexels Key Points A 55-year-old retiree with $2.5M can safely withdraw around $92,500 annually based on the revised 3.7% withdrawal rate. Experts lowered the safe withdrawal rate from 4% to 3.7% due to longer lifespans and lower projected future returns. Even conservative withdrawal rates often result in portfolio decline over time due to market downturns and inflation adjustments. If you’re thinking about retiring or know someone who is, ...

As there’s no way to predict investment returns, inflation rates or longevity, the fear of running out of money in retirement is a real concern for most seniors. To help alleviate this fear, financial advisors often recommend that seniors withdraw no more than 4% of their retirement funds annually, adjusted for inflation. The idea is that at that rate of withdrawal, there’s a very high probability that your money will last for at least 30 years in retirement. But for 2026 and beyond, experts have begun su ...