Only 31% of US adults are confident that their retirement savings will last | Smart Change: Personal Finance

If you’re a middle-income earner, Social Security will only replace about 40% of your salary in retirement, and most seniors need more than 70% to 80% of their previous income to live comfortably. This is where the personal savings come in.

But in a recent New York Life survey, only 31% of respondents said they were very confident that their savings would last throughout retirement. Even worse, only 21% of the baby-boomer generation expressed great confidence in their ongoing savings.

If you’re worried about running out of money in retirement, increasing your IRA or 401(k) is a good way to reduce the likelihood of this scenario. But that’s not the only thing you can do to avoid exhausting the nest egg. In fact, one simple calculation can increase the likelihood that you will have savings to draw on in all of your senior years.

The more strategic you are about withdrawing money from your savings during retirement, the less likely you are to deplete your egg. To this end, it is important to determine the correct withdrawal rate from the start.

Since the 1990s, financial experts have come up with the 4% rule, which states that if you start by withdrawing 4% of your savings balance when you start retirement and then adjust future withdrawals for inflation, your savings should last a good 30 years. But at this point, the 4% rule may be out of date.

For one thing, bonds were paying a lot more interest when the rule was laid, than today. And since seniors are often advised to switch to bonds, this means their savings may not generate enough growth to support an annual withdrawal rate of 4%.

In addition, some people are forced to retire early, which means that their savings may need to continue for more than 30 years. Likewise, some people choose to retire early and land in the same boat.

As such, relying on the 4% rule is not the best idea. You can use it as a starting point, but your best bet is to crunch some numbers yourself and figure out which draw rate is right for you. Consulting a financial advisor may also be a good bet.

You may decide that a 2.5% withdrawal rate is a safer bet for you, based on a long-standing family history. Or you may decide to go with a 3% withdrawal rate. You may even decide that you are safe to go above 4% when it comes to withdrawing money from savings. But again, this is a choice to make based on your personal circumstances.

Feeling uneasy about your savings continuing to be strong isn’t the best way to start retirement. While boosting your nest egg can help you feel more confident about your long-term prospects, developing a clever pull strategy is just as important. Doing so can change your outlook on retirement — and help you enjoy more fun from your senior years.

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