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Why the 4% Rule May Not Be the Right Move on Annual Retirement Withdrawals

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The conventional wisdom on annual retirement withdrawals from savings has been that 4% of pre-retirement yearly assets is a perfectly acceptable figure, and that's why millions of U.S. retirees have used that number as an income withdrawal benchmark.

Increasingly, though, there's a school of thought among the money management cognoscenti that 4% is now an incorrect and low cash pullout number. While every retiree's story is unique, that shift away from 4% is primarily due to declining financial markets, heightened inflation, longer lifespans and higher financial fees.