How Much Can You Safely Spend in Retirement? Understanding the 4% Rule Turning your nest egg into a reliable income stream is one of the biggest retirement challenges. The 4% rule offers a simple starting point—withdraw 4% of your savings in the first year, then adjust for inflation—to help your money last 30 years. But does it still work today? Learn how the rule works, its limitations, and what alternatives might be better suited for your retirement lifestyle.