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Chart of the Day: 4.0% to 5.5% Rule

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer Oct 9, 2025
Bar graph illustrating the projected success of retirees' money lasting through their retirement years based on withdrawal percentages.

Contents

Today’s Chart of the Day is from an article called “Why the 5% Rule is the New 4%” by Nick Maggiulli and includes a chart from Bill Benger’s new book called A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More.
 
The chart shows the success rate of retirees' money lasting 30-years with various withdrawal rates. The rule of thumb originally postulated by Benger was that a 4% withdrawal gave a 90% chance you would not run out of money during your retirement years (based on 30 years.) 
 
In his new book, he updated the portfolio to 55% stock, 40% bonds, 5% cash portfolio, using more current returns, and this number has increased to a 5.5% withdrawal. Additionally, he noted that a 6% withdrawal equates to 75%, 7% equates to 45%, and 8% equates to 25%.
 
Chart of the Day

About the Author

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer
Samuel A. Kiburz, Senior Vice President, Chief Investment Officer

Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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