---
title: Don't Let the '4% Rule' Sink Your Retirement Goals
description: Retirement income expert Wade Pfau explains why the "4% rule" is no longer an acceptable guideline for spending in retirement.
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    articles: 4
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      - Housing
      - Investing
    former_staff: true
published: '2016-10-27T18:25:27.000Z'
modified: '2024-04-17T04:21:27.000Z'
section: Retirement
tags:
  - Money
  - retirement planning
  - video
word_count: 155
canonical: https://money.com/4-percent-rule-retirement-goals-income/
type: Article
source: structured-blocks
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![screen-shot-2016-10-26-at-4-32-02-pm](https://img.money.com/2016/10/screen-shot-2016-10-26-at-4-32-02-pm.png)

When looking into retirement plans and goals, you may stumble upon the "[4% rule](https://money.com/retirement-income/)." This is a guideline for spending down your savings so your money will last your whole retirement: The first year you retire, you can safely spend 4% of your savings. Each year afterward, you can adjust that amount to keep up with inflation.

Wade Pfau, professor of Retirement Income at American College and founder of [retirementresearcher.com](https://retirementresearcher.com/), argues against using the 4% rule, saying that it is somewhat antiquated. One problem with it, Pfau explains, is that it is meant for for a 30-year retirement. People are now living longer than they used to live. There is a decent chance that if you're married, at least one of you will have a retirement longer than three decades.

Another problem, says Pfau, is that investments aren't returning as much as they used to. So he suggests a new rule with a different percentage.

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