10 Retirement Rules That Are OK to Break

When it comes to planning for retirement , there’s no shortage of advice telling you exactly what you should be doing. But not all of that advice is absolute. While some rules offer helpful guidelines, they can sometimes be outdated or too rigid for today’s retirement landscape.

The good news is that some of these so-called “rules” are totally fine to break — if done thoughtfully. Here are 10 retirement rules you don’t have to follow to the letter.

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The 4% rule

The 4% rule suggests that you can withdraw 4% of your retirement savings annually to ensure your money lasts 30 years. While this rule has been a staple of retirement planning for years, it may not be as reliable today due to fluctuating markets and rising life expectancies.

Why you can break it : The 4% rule doesn’t account for the fact that your spending may change over time, and markets don’t always behave predictably.

A more flexible strategy is to adjust your withdrawals based on market conditions or your current needs, making sure you can stretch your savings across a potentially longer retirement.

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Saving to replace 70%-80% of your pre-retirement income

Conventional wisdom suggests you should aim to replace 70%-80% of your pre-retirement income to maintain your standard of living. While this can be a good target, it doesn’t apply to everyone.

Why you can break it : Your income needs in retirement may be significantly different depending on your lifestyle, health, and location. Some retirees need less than expected, while others may want to spend more on travel or hobbies.

Focus on creating a personalized budget that fits your unique retirement goals rather than sticking to a rigid percentage.

Not filing for Social Security before full retirement age

You’ve likely heard that waiting until full retirement age (FRA), which is 66 or 67 depending on your birth year, to claim Social Security benefits will maximize your payout. While true, waiting isn't always the best option for everyone.

Why you can break it : If you need the money sooner or have health concerns that may limit your life expectancy, it can make sense to start collecting benefits early.

The key is to understand how claiming early will affect your long-term benefits and weigh that against your immediate financial needs.

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That you have to fully retire

The traditional idea of retirement involves completely leaving the workforce, but more people are finding that partial retirement or part-time work offers a better balance.

Why you can break it : Continuing to work part-time in retirement can provide additional income, keep you mentally and socially engaged, and reduce the pressure on your retirement savings.

Plus, working beyond the traditional retirement age may even boost your Social Security benefits.

That you have to wait until age 65 to retire

Age 65 has long been considered the “normal” retirement age, perhaps because it's when Medicare eligibility begins. However, there’s no hard rule that says you must wait until then.

Why you can break it : If you’ve saved enough, you can retire earlier than 65. On the flip side, delaying retirement until after 65 might be more beneficial for some, especially if you want to increase your savings or wait for a higher Social Security payout.

Ultimately, the right time to retire depends on your financial situation and personal goals.

That you have to depend on Social Security or your pension alone

Many retirees assume that Social Security or a pension will provide the bulk of their retirement income, but this can be risky given the uncertainty around future benefits.

Why you can break it : Relying on Social Security or a pension alone may not be enough, especially with rising costs of living. Diversifying your income streams — through investments, real estate, or part-time work — can offer more security and financial flexibility in retirement.

Clinging to your original family home

Many people think they need to stay in their family home throughout retirement. While it can be comforting to hold onto a familiar space, it’s not always practical.

Why you can break it : Downsizing to a smaller home can free up equity, reduce your living expenses, and simplify your life. Plus, moving to a location with a lower cost of living can stretch your retirement savings further, allowing you to enjoy more financial freedom.

Sticking with the same asset allocation throughout retirement

The common advice is to move your investments into safer assets like bonds as you approach retirement. While reducing risk is important, this doesn’t mean you should abandon growth-focused investments entirely.

Why you can break it : With people living longer, your retirement could last 30 years or more, meaning you still need growth to outpace inflation.

A diversified portfolio that balances both growth and security is a smarter way to ensure your savings keep up with your spending needs over time.

Never tapping into your home equity

Home equity is often viewed as something to leave untouched in retirement unless absolutely necessary. However, your home is one of your largest assets, and it can be a useful source of income in retirement.

Why you can break it : If you're short on retirement savings, using a reverse mortgage or selling your home could provide a valuable source of income. It’s important to explore all your options, especially if you want to remain in your home for as long as possible.

Always sticking to your original retirement plan

Many people develop a retirement plan early in life and assume they’ll stick to it. While having a plan is important, life doesn’t always go according to schedule, and your needs and circumstances will likely change over time.

Why you can break it : Flexibility is key to a successful retirement. Don’t be afraid to revisit and adjust your plan as you age, whether it’s rethinking your spending, tweaking your investment strategy, or reconsidering your retirement timeline.

Staying adaptable will help you navigate the uncertainties of retirement more effectively.

Bottom line

While traditional retirement rules offer a helpful framework, they aren’t one-size-fits-all. As retirement landscapes evolve, it’s essential to remain flexible and find strategies that work for your unique situation.

Are you following rules that no longer make sense for your financial goals? Consider rethinking the conventional wisdom and crafting a plan for a stress-free retirement .