The 4% Pension Rule: A Relic of a Bygone Era? The four percent pension rule has been a staple of retirement planning for decades. Touted as a safe withdrawal rate, it was designed to last at least thirty years.
However, with the rising cost of living and uncertain market conditions, many are questioning its relevance.
The origins of the rule date back to 1994, when financial planner William Bengen proposed it as a way to mitigate worst case scenarios.