11 Retirement Rules That No Longer Apply in 2026 and Beyond

By Selena Maranjian – Mar 31, 2026 at 4:44AM ESTKey PointsBe sure to have a solid retirement plan, factoring in inflation.You may need to be socking away much more than 10% of your income.Consider holding a part-time job or side gig for a while in retirement.The retirement rules your parents or grandparents might have had in their minds as they saved for their futures may not work well for you. Times have changed, as has some thinking about how to prepare for retirement. Here are some rules that may not serve you well, despite many people believing them. Image source: Getty Images. 1. Retire with a million dollars This rule certainly sounds like plenty of money -- but it might be too little or too much for you. We're all different in how much we spend, how long we might live, and other factors. Inflation matters, too. If you're 35 and aiming for a million dollars, it might only have the purchasing power of $400,000 by the time you're 65. So crunch some numbers to see what a more reasonable goal is for you. 2. Save 10% of your income This is another nice, round number, but much depends on how old you are, when you plan to retire, and how much you've already got socked away. Many of us need to be saving and investing 15% or even 20% of our incomes, if we can -- especially if we have some catching up to do. (Tax-advantaged retirement accounts such as IRAs and 401(k)s can help here, and they feature "catch-up" contributions allowed for those 50 and older.) 3. Retire at 65 Many people imagine retiring at 65, and many retire even earlier than that. It's great if you really can afford to do so, and some people end up retiring early, not because they want to. Keep in mind, though: You might live to 95 or beyond. If you retire at 65, will your retirement income support you for 30 years? 4. Delay claiming Social Security regardless of your situation Various studies have found that most people will maximize total benefits by delaying claiming Social Security until age 70. But depending on your health and needs, starting earlier can make sense. Also, some who are worried about Social Security's surplus running dry are considering starting earlier, too. 5. Use the 4% rule when withdrawing money in retirement The flawed, but still helpful "4% rule" suggests that retirees can withdraw 4% from their nest egg in their first year of retirement and then adjust subsequent annual withdrawals for inflation. (There are other retirement withdrawal strategies to consider, as well.) It can help you think about your withdrawal strategy, but it isn't best for all people or at all times. If you begin retirement right after a big market crash, for example, it will be best to take as little out of your shrunken portfolio as possible. 6. Live off only interest Interest rates have not always been as low as they have been in recent years. In the 1980s, there were some double-digit interest rates available. Having a sizable nest egg and living just off the interest was possible for many. But with the average six-month CD rate recently at 1.5% and other interest rates similarly low, this is no longer a great strategy. 7. Keep 100% minus your age in stocks It's best not to sell out of all your stocks in retirement, because stocks tend to deliver faster growth. And after all, if your retirement lasts 30 years, much of your money will be remaining invested for a very long time. But how much should you keep in stocks? One rule of thumb was to subtract your age from 100%. So if you were 65, you'd keep 35% of your portfolio in stocks. Many experts today suggest starting with 110%, though, to give you more exposure to stocks for longer. If you're a risk taker, you might up that to 120%. If you're skittish, perhaps stick with 100%. 8. Aim to retire with 10 times your salary saved This is a somewhat arbitrary number, because it's not clear which salary -- your highest one? Your most recent one? Also, you might need more or less than this amount. Instead of using a rule like this, carefully estimate how much you'll need in retirement and how you'll amass it. 9. Aim to have 80% of your preretirement income in retirement Similarly, don't assume you'll need 80% of your current income in retirement. You might need more if you plan to travel a lot. Or you might need less, if you've just paid off your home and don't have costly hobbies. 10. Retire with your mortgage paid off This is a good goal to have, but not everyone can achieve it. Definitely try to pay off any debts featuring high interest rates before you retire, though. 11. Retire and stop working forever Finally, don't assume that you'll retire and then never work again. It can be powerful to work a part-time job in your first few years, to let your nest egg grow a bit more as you tax it less. You might even enjoy keeping a side gig you love for a long time -- perhaps tutoring kids, giving music lessons, or knitting and selling sweaters. Each of us is different, with different situations, preferences, risk tolerances, health conditions, likely longevities, and so on. So take the time to draft your own solid retirement plan -- and then execute it.Read NextMar 31, 2026 •By Maurie BackmanWhat the $24,480 Social Security Earnings Limit Means If You Retire This YearMar 30, 2026 •By Kailey Hagen, CFPThe Math-Free Way to Estimate Your Future Social Security BenefitMar 30, 2026 •By Maurie BackmanHere's How Much You Should Have Saved in Your 401(k) by 55Mar 30, 2026 •By Kailey Hagen, CFPYou Aren't Getting the Most Out of Social Security Unless You Do These 3 ThingsMar 30, 2026 •By Maurie Backman3 Reasons Not Having a Roth IRA in Retirement Could Cost YouMar 30, 2026 •By Kailey Hagen, CFPDon't Want RMDs Inflating Your Tax Bill? 3 Things You Can Try.About the AuthorSelena Maranjian is a contributing personal finance and investing expert at The Motley Fool. Selena has produced The Motley Fool’s nationally syndicated newspaper feature since 1997. She is the author of The Motley Fool Money Guide and Investment Clubs: How to Start and Run One the Motley Fool Way, and the co-author of The Motley Fool Investment Guide for Teens and several editions of The Motley Fool Investment Tax Guide. Prior to The Motley Fool, she worked as a high school teacher and public opinion analyst. She holds a master’s degree in teaching from Brown University and a master’s degree in finance from the Wharton School of the University of Pennsylvania.TMFSelena