Retirement in a High-Interest Environment: Adjusting Withdrawal Strategies

The retirement playbook has changed dramatically. After years of scraping by on bonds paying next to nothing, retirees are now looking at a landscape where fixed income actually delivers meaningful returns. The 10-year Treasury yield currently sits around 4.15%, and the Federal Reserve’s December 2025 decision brought the federal funds rate to a 3.5%-3.75% range after three consecutive cuts this year. This environment creates real opportunities for people drawing income from their portfolios. The famous 4% rule has served as a retirement planning cornerstone for decades. Researcher Bill Bengen developed that guideline back in 1994, suggesting that withdrawing 4% […]