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That’s the 4% rule math.
But the expenditure data used in the article shows average retiree spending closer to $50k–$90k depending on the state.
So the constraint becomes:
$1M × 4% = $40k
If spending > $40k, the plan depends on higher returns, lower spending, or other income (Social Security, work, etc.).
The study is basically showing that actual spending in many places is above the 4% baseline.
That’s the 4% rule math.
But the expenditure data used in the article shows average retiree spending closer to $50k–$90k depending on the state.
So the constraint becomes:
$1M × 4% = $40k
If spending > $40k, the plan depends on higher returns, lower spending, or other income (Social Security, work, etc.).
The study is basically showing that actual spending in many places is above the 4% baseline.