Retirement Spending Strategy Tested

Researchers test the four percent retirement rule and find financial stability is key.

The 4% rule for retirement spending is a guideline that allows savers to withdraw 4% of their portfolio in the first year of retirement, plus more to account for inflation, each year after. This strategy is tested by research assistants, Taha Abusaymeh and Anton Siren, to determine whether it works or fails. They also found that the biggest obstacle to this strategy is financial stability.

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