​Suze Orman Says Ditch The 4% Retirement Rule And Opt For Less – ‘It’s Very Dangerous’ And No Longer Works In Today’s Financial Environment 

The 4% rule has been a trusted retirement planning guideline for decades. It’s simple: withdraw 4% of your savings annually, adjust for inflation and your money should last throughout retirement. But Suze Orman believes it’s time to abandon this so-called “golden rule.”
“It doesn’t work anymore. I think it’s very dangerous,” Orman said in a 2024 interview with Moneywise. She suggests scaling back to a 3% withdrawal rate – or even less. “The more you cannot take out of a retirement account, the better you are,” she explained, pointing to the uncertain economic landscape retirees face today.
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Her reasoning is clear: markets are unpredictable, inflation is chipping away at purchasing power, and people are living longer than ever. This combination creates a perfect storm for retirees who use outdated withdrawal strategies. To combat these risks, Orman recommends working longer, ideally until age 70, to give your savings time to grow. She advises delaying Social Security claims until 70 to lock in higher monthly payments. These steps, she says, are critical for stretching your retirement dollars.
But not everyone agrees with Orman’s ultraconservative advice. Dave Ramsey, another household name in personal finance, suggests retirees can withdraw more – up to 8% – if they follow a disciplined investment strategy. Ramsey’s approach assumes strong market returns and is geared toward those willing to take on higher risk. Meanwhile, Bill Bengen, the creator of the 4% rule, has updated his advice too. He now recommends a slightly higher withdrawal rate of 4.7%, reflecting new research on portfolio performance.
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The contrast between these perspectives highlights one key takeaway: there’s no one-size-fits-all solution for retirement. Your withdrawal strategy depends on your financial situation, risk tolerance and life expectancy. While Orman’s cautious approach protects retirees from outliving their savings, Ramsey and Bengen emphasize the potential for higher returns.
No matter which advice resonates with you, the message is the same: retirement planning requires flexibility. Markets change, life expectancy increases and financial needs evolve. Consulting with a financial advisor can help you build a strategy that fits your goals and gives you peace of mind – whether you lean toward Orman’s 3% rule or a more optimistic approach.
Orman’s advice may feel conservative, but her message is clear: it’s better to be cautious in an unpredictable world than to gamble with your financial future. 
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