Part 5/6:
Given these evolving considerations, experts like Robert Brokamp advise not to adopt the 4% Rule strictly. Bengen himself has acknowledged shifting perspectives in subsequent research, suggesting a rate as high as 4.5% but also recognizing arguments for a lower rate of around 3%, especially in light of current market valuations and interest rates.
What remains vital, however, is flexibility. A key takeaway from the discussions is that retirees should be prepared to adjust their withdrawal rates based on market conditions. If the market declines, cutting back on spending can be an effective strategy to allow the portfolio to recover without jeopardizing long-term financial health.