Chameleon Magazine

If the world of pensions had a rockstar, it wouldn’t be Mick Jagger—it would be William Bengen, a financial planner who struck gold in the 1990s with a single chart and a calculator. His famous “4% rule” became the Stairway to Heaven of retirement planning: withdraw 4% of your portfolio annually, adjust for inflation, and you’ll supposedly never run out of money. Forget shredding guitars—this man shredded actuarial tables.

🎤 One-Hit Wonder or Timeless Classic?

Bengen’s rule has been plastered across retirement seminars, financial advice columns, and PowerPoint slides for decades. He’s the Elvis of annuities, the Springsteen of spreadsheets. But like any smash hit, critics ask: is the 4% rule timeless, or just a catchy jingle from a different era?

Because, let’s face it, when Bengen was running the numbers, gas was cheaper than bottled water, the internet was still dial-up, and nobody was doomscrolling through TikTok while wondering if their pension pot would outlast the climate crisis. Markets were tamer, inflation was sleepier, and bonds actually paid you to own them. Today? Investors are sweating harder than a retiree trying to understand crypto.

Still, the rule survives—because people like certainty, even if it’s mathematically dubious. The 4% rule is less about precision and more about comfort food for your finances. It’s macaroni cheese for your portfolio: maybe not the healthiest thing, but oh, it feels safe.

🧮 The Sleight of Hand Explained

Here’s how the trick actually works:

1. Start with your retirement pot — let’s say £500,000.
2. Withdraw 4% in year one — that’s £20,000 to cover cruises, gin, or fending off spam emails about crypto.
3. Each year after, adjust that figure for inflation — so if inflation is 3%, year two’s withdrawal is £20,600.
4. Keep a balanced portfolio — Bengen assumed a 50/50 stock-and-bond mix to keep the money replenishing itself.
5. Don’t panic — based on decades of historical data, your money should last 30 years, statistically getting you past bingo nights and well into the quiet years of shouting at the TV.

It’s not complicated, and that’s the point. People love it because they can write it on the back of a napkin instead of decoding a Wall Street white paper. Whether it’s still gospel in today’s rollercoaster markets is another matter—but for now, Bengen remains the one-hit wonder still topping the retirement charts.

🔥 Challenges 🔥

Is the 4% rule a timeless anthem or just an overplayed oldie? 🎶📉

Would you bet your retirement on a formula older than Google—or do you prefer your pensions spiced with modern chaos?

👇 Comment, like, share, and drop your hottest takes.

The best insights (and savagest roasts) will feature in the next issue of the magazine. 📝🔥