Research has found that you can withdraw up to 4 % a year from your nest egg, plus inflation adjustments, and run only a small risk of outliving your money if you retire at 65. (moneysense.ca)
The idea is that retirees with well - diversified portfolios can start by withdrawing 4 percent (actually, it is closer to 4.5 percent) of their holdings — or $ 4,500 per year for every $ 100,000 of investments — to allow themselves a cost - of - living increase every year and still be reasonably assured of not outliving their money. (cnbc.com)
Some retirees worry that if they don't abide by the 4 % rule (which states that's the maximum you can withdraw from your nest egg without outliving your money in retirement) their RRIFs will dwindle to zero as they age. (moneysense.ca)