How Much Can I Comfortably Spend in Retirement? A Practical Framework
You didn’t work 30 or 40 years to guess your way through retirement.
The real question isn’t “What’s my withdrawal rate?”
It’s:
How do I create steady income that lets me sleep at night?
You’ve probably heard of the 4% rule. It’s simple — and that’s part of the problem.
It doesn’t account for:
Social Security timing
Taxes and Medicare premium adjustments (IRMAA)
Market volatility early in retirement
Your actual essential monthly expenses
Retirement income planning needs more than a percentage.
A Better Approach: The Floor-First Framework
Here’s the practical model we use with clients:
Step 1: Nail the floor.
Add up guaranteed income sources — Social Security, pensions, lifetime income streams.
Step 2: Match essentials.
Cover housing, food, insurance, utilities, and healthcare first.
Step 3: Smooth the gap.
Use portfolio withdrawals to support discretionary spending.
Step 4: Add guardrails.
Adjust spending modestly after strong or weak market years.
When guaranteed income covers essentials, your portfolio supports flexibility — not survival.
Retirement income planning isn’t about chasing returns.
It’s about stability.
