Financial advisors recommend withdrawing no more than 4% of retirement funds annually to avoid running out of money. New recommendation suggests a 4.7% withdrawal rate for 2026 and beyond, with adjustments for inflation. Having a flexible retirement plan and emergency fund is crucial to sustain retirement income over the long term.

Higher interest rates and access to high-yield savings accounts contribute to the increase in the safe withdrawal rate. Many retirees are supplementing their income with side gigs or part-time jobs. Advanced financial planning allows for adjustments in retirement spending patterns based on investment results to ensure longevity of retirement portfolios.

Adjusting withdrawals based on investment performance and market conditions can help minimize the impact of bad investment results. Taking less than the inflation-adjusted amount each year can build a buffer in case of rough times. Tailoring distribution strategies to personal financial situations is key to protecting nest eggs and enjoying retirement.

A 4.7% withdrawal rate is a starting point for retirement longevity, but adjustments may be necessary based on individual circumstances. Building flexibility into retirement plans can help avoid running out of money prematurely and ensure a comfortable retirement lifestyle. Experts advise using the 4.7% rule as a guideline and customizing it to fit personal financial goals.

Read more at Yahoo Finance: What the New 4.7% Rule Looks Like for Spending