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In this week’s newsletter:
- Is 4% Still a Safe Withdrawal Rate for UK Retirees?
- What’s the Outlook for UK House Prices in 2026?
- A Decade After Brexit, UK Stocks Are Rebounding
- These European Stocks Could Be AI Winners
- The Best- and Worst-Performing Investment Trusts in April
- Rheinmetall Shares Slump Despite Iran War
With the stock and bond market drama so far in 2026, you might be surprised to learn that one of the most prominent rules of thumb for retiree investors remains intact. The so-called 4% safe withdrawal rule—deemed a starting point for investors looking to make annual withdrawals from their portfolios in retirement—still works over a 30-year time horizon, new Morningstar research shows. But there’s a catch.
In her new paper, Morningstar director of personal finance and retirement planning Christine Benz shows that a maximum withdrawal rate of 4.1% should still work for UK retirees. However, it hinges on what many investors will think is a significant reduction in equity exposure—a long way below the level even determined 60/40 investors perhaps realise. To read the research, check out our detailed coverage below, and look out for an exclusive video interview with Christine coming soon.
Retirees draw on multiple assets to fund their lifestyles in later life and none is more important than the home. UK house prices are proving resilient for now, so we’re asking why, and looking at the outlook for the rest of the year. Those who already own their own homes outright are arguably in a “least-worst” position. Those who are about to remortgage or take equity from their properties face a complex set of choices in the remainder of the year, particularly if mortgage rates stay as elevated as they recently have been. I looked at the outlook for mortgage rates in 2026 just two weeks ago. Read more on that here.
On May 7, the Morningstar Investment Conference celebrated its 20th anniversary in London, and there was plenty of opportunity to examine changing markets and evolving mindsets on everything from financial advice to investing in nuclear power. The UK finds itself caught between the US and continental Europe on a multitude of issues—including defense, artificial intelligence regulation, and politics more generally.
On that difficult subject, 10 years on from the Brexit vote, Henry Ince summarises how investing in the UK has changed, and what may be to come. Six months on from Rheinmetall’s RHM share price peak, Karen Gilchrist asks whether this key European defense name is a buy. And stand by for a range of videos from MIC UK, including keynote speaker Dr Pippa Malmgren and Liontrust fund manager Victoria Stevens.
Ollie Smith is senior editor at Morningstar.co.uk
