The New Rules of Retirement Spending

The rules that govern retirement spending are changing. No surprise, then, that retirees have lots of new questions.

For decades, conventional wisdom was that retirees who wanted a high degree of certainty their money will last should spend no more than 4% of their savings in the first year of retirement and adjust that amount annually to keep pace with inflation. Research firm Morningstar Inc. upended that thinking earlier this month with a recommendation that people spend no more than 3.3% of their savings at the start of their golden years.