How 3% Inflation Impacts Retirement Withdrawal Rates
No, the 4% rule isn’t autopilot, especially with steady 3% inflation The 4% rule has great PR. Bill Bengen’s 1994 paper showed that a retiree starting at 4%, then adjusting that dollar amount for inflation each year, survived every 30-year stretch in the historical U.S. data he used. Useful? Absolutely. Guaranteed? Not even close. It was built on specific U.S. stock/bond returns and inflation paths. And the last few years reminded us that inflation isn’t a background character; it’s the script editor. Quick reality check on the backdrop we’re living in right now. The CPI surge after the pandemic peaked…