Safe Withdrawal Rate UK: Why the 4% Rule Falls Short

Pfau argues that the 4% rule may not be safe due to lower expected bond returns and longer retirement periods.

Sequence of returns risk means poor market performance early in retirement can severely impact long-term financial security.

UK retirees can mitigate this risk by delaying withdrawals from personal savings until the State Pension provides income.

Dynamic withdrawal strategies, like setting guardrails, allow retirees to adjust their spending based on market conditions.