Is the Retirement Safe Withdrawal Rate Below 4% or Almost 6%?

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4.3 • 3.1K Ratings

🗓️ 10 January 2026

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

The No. 1 financial goal for most Americans is retirement. Once they retire, their primary goal becomes not running out of money. Host Robert Brokamp discusses the pros, cons, and tradeoffs of various withdrawal strategies with Christine Benz, director of personal finance at Morningstar and co-author of a new report on retirement income. Also in this episode:-Prepare for lower taxes in 2026 by having less withheld from your paycheck and contributing more to your investments-A recent Washington Post article argues that bigger houses lead to lower levels of happiness-The percentage of the global stock market that comes from U.S. stocks is near an all-time high, but non-U.S. stocks made up for lost ground in 2025-Listeners share their tips and tricks for staying on top of their investments and spending Host: Robert BrokampGuest: Christine BenzEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Is the retirement safe withdrawal rate below 4% and how not to overpay Uncle Sam?
0:09.9	That and more on this Saturday personal finance edition of Motley Full Money.
0:19.0	I'm Robert Brokamp, and this week I speak with Morning Stars Christine Benz, who, along with
0:22.8	her colleagues Amy Arnott, Jason Kephart, and Tao Guo, recently published an extensive report
0:27.7	on the state of retirement income.
0:29.9	But first, let's talk about a few highlights from last week's financial headlines.
0:32.9	You know, here in the U.S., income taxes are a pay-as-you-go system.
0:36.8	The certain amount must be withheld or paid throughout the year, otherwise you may owe penalties and interest.
0:41.6	To build it a buffer, most Americans have too much withheld.
0:44.9	About two-thirds of tax filers get a refund with the average amount exceeding $3,000.
0:49.3	And that figure will likely be even higher this year due to the passage of the one big beautiful bill last
0:54.4	July, which will reduce the average households tax bill by $3,700, according to the tax
0:59.8	foundation. Plus, according to our recent CNBC article, the amount it takes to move into a higher
1:04.3	tax bracket for 2026 will be increasing 2.3% to 4%, depending on the bracket, so more of your
1:10.6	income will be taxed at lower rates
1:12.3	this year.
1:13.3	Now, it makes some sense to play it safe with having more withheld from your paycheck, and I
1:17.8	understand there's no feeling like completing your tax return and seeing that Uncle Sam owes
1:22.1	you money.
1:22.8	But you missed out on the returns that overpayment could have earned if it was in your account
1:27.2	and not the
1:28.0	governments. So now is the time to reevaluate and perhaps change the amount you have withheld
	...

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