What’s the Best Withdrawal Strategy in Retirement?

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
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Weekend Reading

After a lifetime of disciplined saving, entering retirement should feel like crossing a finish line—but for many, it simply marks the beginning of a new, complex journey: turning your wealth into a reliable income stream.

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How do you pinpoint the path that best supports your lifestyle? Here’s a breakdown of the top strategies:

📌 The 4% Rule: A straightforward, historically reliable method—withdraw 4% of your portfolio in the first year, then adjust annually for inflation. Simple, yes—but not adaptable to real-life market ups and downs.

📌 Flexible Spending Strategy: Spend more when the market is up, cut back when it’s down. This method lets you withdraw as much as 5.5% annually—if you’re comfortable trimming back discretionary spending in tough times.

📌 Guardrails Strategy: Adjust spending only when your portfolio hits certain upper or lower limits

📌 Bucket Strategy: Segment your savings into short-, mid-, and long-term buckets based on when you’ll need the money. This helps offer emotional peace of mind with spending goals.

📌 Never Touch the Principal: The most common real-life strategy—live off interest and income only. Simple, conservative, and popular among retirees who value peace of mind over maximizing every dollar.

Key Takeaways: Retirement isn’t just about math—it’s about meaning, lifestyle, and personal comfort. Whether you're a numbers person or someone who leads with intuition, you can find a withdrawal strategy that aligns with your values and gives you confidence for the years ahead.