Ridofranz / Getty Images Vanguard reports that one in four retirees don't touch their retirement savings at all during the first five years after leaving work. Key Takeaways Recent research shows that married retirees withdraw about 2.1% of their savings annually, while spending 80% of their guaranteed income, like Social Security. Morningstar's latest analysis suggests retirees can safely withdraw 3.9% to start, close to the classic 4% annual withdrawal rule Those willing to adjust spending based on ...

Core Insights - The article emphasizes the importance of having a strategic plan for retirement withdrawals to avoid the risk of running out of money during retirement [2] Group 1: Spending Needs - It is crucial to map out a budget that includes both needs and wants before deciding on withdrawal amounts from retirement savings [4] - Retirees should consider various expenses such as gym memberships, club fees, subscriptions, and travel when planning their budget [5] Group 2: Other Income Sources - American retirees often have additional income sources, such as Social Security, which should be estimated and factored into the withdrawal plan [6] - Other potential income streams may include part-time work or rental income from properties, contributing to a comprehensive understanding of financial needs [6] Group 3: Safe Withdrawal Rate - Establishing a safe withdrawal rate is essential to ensure retirement savings last throughout the retiree's lifetime [7] - The popular 4% rule is mentioned as a guideline for a balanced portfolio of stocks and bonds, but adjustments may be necessary based on individual portfolio composition [9] - For a portfolio heavily weighted in bonds, a lower withdrawal rate of 2.5% to 3% may be more appropriate, while a stock-heavy portfolio might allow for higher withdrawals [10] - The age at which withdrawals begin should also influence the withdrawal strategy, with early retirees needing to be more conservative [11]