Have you ever heard of the 4% rule? It’s a widely accepted rule of thumb for how much retirees can spend in their first year of retirement while ensuring that their savings lasts for about 30 years or more. The theory is that retirees can withdraw up to 4% of their retirement portfolio in their first year of retirement and then in subsequent years, adjust their withdrawal to match inflation. It is important to note that this rule is not suggesting that retirees withdraw 4% every year; just the first year in order to adjust their spending according to inflation.