Many retirees today are asking the same question:
“Can I safely spend what I planned, or do I need to cut back?”
Rising prices have made this one of the biggest worries for people in retirement. Surveys across Canada and the United States show inflation is now the number-one concern for retired households, and many say they’ve already adjusted their spending plans at least once.
You may also be hearing more discussion about something called the “safe withdrawal rate.” For years, many financial planners used a rough guideline called the 4% rule, meaning retirees could withdraw about 4% of their savings each year.
Some newer research suggests a slightly lower starting point around 3.9% - to reflect longer lifespans and market uncertainty.
For example:
4% of a $400,000 portfolio = $16,000 per year
3.9% = $15,600 per year
Retirement Income Usually Comes From Several Sources
But investment withdrawals are only one part of retirement income.
The bigger picture is how that income fits together with other sources like:
CPP and OAS (Canada)
Social Security (U.S.)
workplace pensions
part-time income
personal savings
For most retirees, these pieces work together to form a total retirement income plan.
But your investment withdrawals are only one part of retirement income.
The bigger picture is how that income fits together with other sources like:
CPP and OAS (Canada)
Social Security (U.S.)
workplace pensions
part-time income
personal savings
For most retirees, these pieces work together to form a total retirement income plan.
The Bottom Line
New headlines and updated percentages are not a verdict on your retirement plan.
They’re simply a reminder to check in on your plan, review your numbers, and make small adjustments if needed.
For many retirees, a few thoughtful changes are enough to keep their finances working smoothly - while still enjoying the life they planned for retirement.
