Imagine this: You've worked hard, saved diligently, and finally reached retirement —only to worry constantly about whether your money will last. It's a fear many women share, especially as we're living longer and facing costs our parents never imagined. That's why financial guru Suze Orman, the host of the Women & Money podcast and author of The Ultimate Retirement Guide for 50,  is sounding the alarm about the popular 4 percent retirement withdrawal rate rule. She says it's outdated—and potentially dangerous. But don't panic: Suze has a smarter, safer strategy that could help your savings go the distance. Here's what you need to know.

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Q: I’ve heard of the 4 percent rule for retirement. Is it still safe to withdraw that much a year, or should I be more cautious to avoid running out of money?

SUZE:Before I tell you whether the 4 percent rule still works, let me first explain what it is. It’s a retirement guideline created in the early 1990s that says if you withdraw 4 percent of your savings in your first year of retirement, then increase that dollar amount each year for inflation, your money should last about 30 years.

Here’s the problem: That rule was created in a world that no longer exists. In the 1990s, people didn’t routinely live into their late 80s and 90s the way we do today. No one was planning for artificial intelligence changing careers, people being pushed out of the workforce earlier than expected or health insurance premiums becoming one of the largest expenses in retirement.

And I can promise you this: They did not plan for a global pandemic or the kind of economic uncertainty we now live with. Yet people still treat the 4 percent rule like it’s a guarantee.

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My rule is 3 to 3.5 percent 

I’ve been criticized for years for being “too conservative.” And my response has always been the same—I’m not conservative, I’m realistic. Not because you should live in fear, but because you need to live with options.

And here’s what most retirement rules never talk about—it’s not just what you withdraw; it’s what you spend. You take money out with one hand, and it immediately leaves with the other. Mortgage payments. Debt. Insurance. Taxes. Healthcare.

If you retire owning your home outright, totally out of deb t and with intentionally low expenses, you simply don’t need to withdraw as much. And the less you take, the longer your money lasts. And my rule isn’t extreme. An example: On $1 million, 4 percent is $40,000. At 3 or 3.5 percent, it’s $30,000 to $35,000.