10/07/2026
The 4% rule, spending taxable accounts first, and planning for expenses to rise every year are three of the most repeated pieces of retirement advice.
Here's what each one leaves out.
Is the 4% rule still a safe withdrawal rate?
It's a starting point. It doesn't account for when you'll claim Social Security, how your withdrawals are taxed, or how your spending changes over time. Morningstar's base-case safe starting withdrawal rate for new retirees is 3.9% for 2026, up from 3.7% the year before. The number changes every year.
Which retirement account should you withdraw from first?
Often, more than one. Spending taxable accounts first may lower taxes today, but tax-deferred accounts keep growing until required minimum distributions begin at 73 (75 for those born in 1960 or later). A mix of tax-deferred, taxable and Roth withdrawals, along with Roth conversions in lower-income years, is designed to help lower lifetime taxes, not just this year's.
Do retirement expenses go up every year?
Research in the Journal of Financial Planning (Blanchett, 2014) found inflation-adjusted spending falls about 1% a year in retirement on average. Many retirees spend more in their active early years and less as they slow down.
Before you retire, know:
✅ Your Social Security claiming age, and why
✅ Your withdrawal mix across account types
✅ When your RMDs begin
✅ Your early-retirement budget vs. later years
✅ That you have income assets set aside, so you don't have to sell growth assets when the market is down
👉 Want help building yours? Book a complimentary 30-minute review with Lucia Capital Group. Link in comments.
