Part 4/6:
Additionally, the 4% Rule is built on several assumptions that may not hold true for every retiree. It assumes a balanced portfolio with an even mix of stocks and bonds, which doesn't reflect the varied risk appetites or investment strategies of individual retirees. Furthermore, it presumes that retirees will not venture into retirement prematurely—a factor that becomes critical as life expectancy increases. The Social Security Administration's data suggests about 25% of retirees at age 65 will live past 90, which can dramatically impact the sustainability of a 4% withdrawal strategy.