The 4% withdrawal rule states your moderately invested portfolio should sustain you if you only withdraw 4% of it per year. That means if you have a $1,000,000 portfolio, $40,000 plus any additional stream of income and social security should be sufficient.
Is this true for everyone? Absolutely not, everyone’s financial plan is very unique and could differ based on social security and pension amounts, portfolio balances and risk tolerance and total expenses. Consider revisiting your plan at least annually to ensure you successfully reach retirement and flourish within it.