Summary In this episode of the Humans vs Retirement podcast, I interview Bill Bengen, the pioneer of the 4% safe withdrawal strategy, who shares insights from his extensive research on retirement income strategies. Bill discusses the evolution of the 4% safe withdrawal rate, revealing that the worst-case scenario may now be closer to 5%. He emphasises the importance of diversification, glider path investing, and rebalancing in enhancing withdrawal rates. The conversation also delves into the risks of inflation and the significance of understanding personal inflation rates in retirement planning. Bill concludes with thoughts on the current market environment and the future of retirement planning. Takeaways Bill Bengen's research has evolved the 4% rule to a 5% worst-case scenario. Only one out of 400 retirees in Bengen's database faced the 5% withdrawal rate. Diversification across multiple asset classes is crucial for sustainable withdrawals. Glider path investing can significantly enhance retirement income. Rebalancing portfolios regularly is essential to avoid overexposure to equities. Sequence of inflation risk poses a significant threat to retirees. Personal inflation rates often exceed government-reported figures. Retirement spending tends to decrease in real terms over time. Many retirees fear running out of money more than death itself. Current market conditions are unique and require careful planning. Sound Bites "The 4% rule has evolved to a 5% worst case." "Only one out of 400 retirees hit the 5% mark." "Diversification is key to higher withdrawal rates." Chapters 00:00 - Introduction to Bill Bengen and His Research 04:52 - The Evolution of the 4% Withdrawal Rule 10:05 - New Insights: The 5% Withdrawal Rate 14:49 - Strategies for Sustainable Withdrawals 20:07 - Understanding Inflation Risks in Retirement 25:09 - The Importance of Personal Inflation Rates 29:59 - The Future of Retirement Planning 34:58 - Conclusion and Future Directions