The 2% rule is a concept related to retirement spending. The 2% rule suggests that you should aim to spend 2% of your portfolio each year during retirement . This rule is more conservative compared to the commonly known 4% rule . The 4% rule suggests that you can safely spend 4% of your portfolio in the first year of retirement and adjust that dollar amount for inflation each year thereafter . However, the 2% rule is not as widely accepted as the 4% rule and may require a more conservative approach to retirement spending . It's important to note that these rules are based on historical data and may not account for all individual circumstances or market conditions . Flexibility and adjustment in retirement spending is advised .