Retiree at 75 with $1.4M Nest Egg Doesn't Have to Follow 4% Rule

Older retirees can often spend more—but need a smart plan.

Published on Feb. 14, 2026

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A 75-year-old retiree with a $1.4 million nest egg doesn't necessarily have to follow the traditional 4% withdrawal rule, experts say. Instead, they can create a more customized withdrawal strategy based on their specific needs, health status, longevity expectations, and legacy goals. While the 4% rule is a good starting point, retirees at this age can often withdraw 5-7% annually and still maintain a sustainable portfolio.

Why it matters

The 4% rule, while a popular guideline, may not be the best fit for all retirees, especially those retiring later in life. Older retirees often have different spending patterns and priorities that require a more personalized approach to managing their nest egg.

The details

Rather than feeling constrained by the 4% rule, financial advisors recommend that 75-year-old retirees with $1.4 million come up with a withdrawal strategy tailored to their individual circumstances. This could involve starting with a higher withdrawal rate, such as 5-7%, and then adjusting it over time based on market conditions and spending needs. The key is to remain flexible and not treat the 4% rule as an absolute.

  • The 2024 MassMutual survey found that retirees and pre-retirees think 63 is an optimal retirement age.

The players

Jim Davis

A certified financial planner (CFP) and senior wealth adviser with Aspen Wealth Management.

Mark Sweeney

The co-founder of Longevity Wealth Strategies.

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What they’re saying

“Personal finance is personal. Retirement income should follow suit.”

— Jim Davis, Certified financial planner (CFP) and senior wealth adviser

“Health status, longevity expectations, and legacy goals all play a meaningful role in determining what's appropriate.”

— Jim Davis, Certified financial planner (CFP) and senior wealth adviser

“Retiring at 75 completely invalidates the 4 percent rule as a restriction. For someone retiring at 75 with $1.4 million, research suggests that a sustainable initial withdrawal rate can rise into the 5 percent to 7 percent range.”

— Mark Sweeney, Co-founder of Longevity Wealth Strategies

What’s next

Before deciding on a withdrawal rate, the retiree should calculate their income needs and figure out their spending plans for the next few years. They should also clearly define their legacy goals, as that will impact how aggressively they can withdraw from their nest egg.

The takeaway

Retirees, especially those retiring later in life, don't have to strictly adhere to the 4% rule when managing their nest egg. A more flexible, personalized approach that considers their unique circumstances and priorities is often a better strategy for maximizing their retirement savings.