Retirement Corpus: How to Withdraw Safely Without Running Out of Money

• The 'safe' withdrawal rate depends on retirement length, investment strategy, changing expenses, and flexibility.
• Sequence risk highlights the danger of aggressive withdrawals during early market downturns, forcing asset sales at low prices.
• The 4 percent rule, a common starting point, has limitations as it's based on US data, a 30-year horizon, and rigid adherence.
• A more conservative starting range of 3 to 3.5 percent is often recommended for longer retirements, providing a margin of safety.
• Flexibility in spending, a diversified asset mix (including equity), and accounting for taxes and healthcare costs are crucial for sustainable withdrawals.

Why It Matters: Safely withdrawing from your retirement corpus requires a cautious, flexible approach, adapting to market and personal needs.