The 4% rule has been a cornerstone of retirement planning for decades, but changing market conditions and longer lifespans have many questioning its validity. This rule suggests that retirees can withdraw 4% of their initial portfolio value annually, adjusted for inflation, with a high probability of not outliving their money.

However, with bond yields lower than historical averages and increased market volatility, some experts suggest a more conservative 3-3.5% withdrawal rate may be appropriate for today’s retirees.