Have you/could you retire on the 4% percent rule? By definition: The 4% rule is a rule of thumb used to determine how much a retiree should withdraw from a retirement account each year. This rule seeks to provide a steady income stream to the retiree while also maintaining an account balance that keeps income flowing through retirement. Experts consider the 4% withdrawal rate to be safe, as the withdrawals will consist primarily of interest and dividends. The 4% rule helps financial planners and retirees set a portfolio's withdrawal rate. Life expectancy plays an important role in determining if this rate will be sustainable, as retirees who live longer need their portfolios to last longer, and medical costs and other expenses can increase as retirees age. While prudent, I personally think there are too many variables in each person's situation to make a blanket 4% rule. I think you adjust as the retirement years progress.