4% Rule Retirement: Does It Still Work in 2025?

When people talk about 4% rule retirement, a guideline suggesting you can withdraw 4% of your retirement savings each year without running out of money. Also known as the safe withdrawal rate, it became the gold standard after the 1994 Trinity Study showed this approach worked in nearly all historical market conditions over 30 years. But that was then. Today, interest rates are different, inflation has spiked, and retirees are living longer. The 4% rule isn’t broken—but it’s not a one-size-fits-all answer anymore.

What most people don’t realize is that the 4% rule assumes a balanced portfolio of 50-75% stocks and the rest bonds. It also assumes you’ll adjust withdrawals for inflation every year. But if your portfolio is heavy in real estate or crypto—like some of the strategies covered in our posts on real estate diversification, adding non-traditional assets to reduce risk and boost returns—then the 4% rule might not apply the same way. And if you’re relying on Roth conversions to manage your tax brackets in retirement, as discussed in our guide on Roth conversion, paying taxes now to avoid higher rates later, your withdrawal strategy needs to sync with your tax plan.

The FIRE movement, Financial Independence, Retire Early made the 4% rule famous, but many early retirees now use dynamic withdrawal methods instead. Some start at 3% if they’re nervous. Others use 5% if they have side income or plan to work part-time. The truth? No fixed percentage works for everyone. Your age, health, spending habits, and market timing all matter. That’s why the posts here don’t just repeat the rule—they show you how to tweak it, test it, and even replace it with smarter, more flexible systems.

You’ll find real examples here—not theory. Posts that break down how to balance a portfolio with equities, how to protect against market crashes, and how to avoid emotional mistakes when you’re finally living off your savings. The 4% rule retirement idea started as a simple tool. Now it’s a starting point for a smarter conversation about how to make your money last. What works for someone in their 60s with a pension isn’t the same as someone retiring at 50 with no safety net. The goal isn’t to follow a number. It’s to build a plan that fits your life.