Nobody wants to run out of money in retirement.

Traditional wisdom says you should plan to live off 4% of your nest egg per year after you retire, which would give your investments enough of a cushion to sustain a lengthy retirement.

But based on recent market trends, the new rule of thumb should be 3.3%, according to researchers at Morningstar.

Check out this video to learn what the new change would mean for people who retire with $1 million.

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

CHECK OUT: 10 popular retirement destinations that are getting pricey fast via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Also on CNBC

• No emergency savings? New workplace benefits aim to help
• Pay hikes of 5% or more could be in store for employees in 2022
• Student loan scams increase when payments are paused. What to know

Subscribe to the CNBC YouTube Channel

Morning Squawk Newsletter