Thu Nov 13 2025, by Tyler Gardner

Why I'll Spend 7% of My Assets Per Year in Retirement

Here is exactly why I will be spending 7% of my assets per year in retirement. I'm Tyler, a former financial advisor and portfolio manager. I make financial content for free so you don't have to pay for it.

1. Reduced Spending

According to a 2022 report by the Fed, retirees spent 2.4% less per year in retirement, indicating that actual spending patterns can be lower than expected.

2. Investment Retention

According to a 2023 study by BlackRock, retirees had over 80% of their pre-retirement investments intact after 20 years, showing that it's possible to maintain a significant portion of your wealth throughout retirement.

3. High Probability of Success

The famous Trinity study of 1998 found that retirees with a starting portfolio of $1 million, who were 100% invested in stocks, and drew down 7% per year had a 96% chance of being just fine, even with this aggressive withdrawal rate.

4. Fear of Spending

According to Morningstar, most retirees are currently only spending 2.8% of their principal investments per year because they are scared of running out of money. This fear can lead many to unnecessarily underutilize their assets in retirement.

Conclusion

As always, do what works for you. Remember, just because one study found X to be true, we can always find another that finds Y to be true. I choose the study that doesn't have me living in fear throughout my golden years. If any of this is helpful, sign up for my free weekly newsletter by clicking the link in my bio. Each week, I'll send you over another money playbook that actually works.

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