How Much Can You Spend in Retirement? A Smarter Take on the 4% Rule

Get your customized planning started by scheduling a no-cost discovery call: For decades, the 4% rule has been used as a simple guideline for retirement spending—but it was never meant to be a guarantee. In this episode, Tyler Emrick, CFA®, CFP®, will revisit the research behind the 4% rule and explore new findings from its creator, Bill Bengen, suggesting that retirees may be able to spend more under updated assumptions. We explain why sequence-of-returns risk matters more than average returns, how thinking in terms of portfolio “runway” can help manage downturns, and why dynamic withdrawal strategies often lead to better long-term outcomes. If you’re wondering how much you can realistically spend in retirement, this episode will help you think about it the right way. Here’s some of what we discuss in this episode: 🔄 Retirement spending should be dynamic, not static 🧱 Diversification and flexible withdrawal strategies help weather market downturns 🛫 A “runway” of preservation assets (cash/bonds) buys time during volatility 🔧 Rebalancing and spending flexibility are critical to long-term success 💬 Planning should be annual, adaptive, and personalized—not one-and-done Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 20-minute call with one of True Wealth's CFP® Professionals. Our website: Phone: 855.TWD.PLAN Contact our team: Check out our other no-cost financial resources here: Watch the show now on YouTube:

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How Much Can You Spend in Retirement? A Smarter Take on the 4% Rule is an episode from Retire Smarter by Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®.

This episode is 26:42 long.

This episode was published on Jan 23, 2026.

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