Tips for Retiring Amid Market Uncertainty

"There's always some level of uncertainty that comes with investing, but when volatility is high and the news cycle shifts into overdrive, that anxiety gets amplified," says Rob Williams, managing director of financial planning, retirement income, and wealth management at the Schwab Center for Financial Research. "It's completely natural to feel unsettled.

"That said, we encourage clients to separate their emotions from the numbers. When you're approaching retirement, your stress may be heightened because the time horizon for when you may need money from investments is shrinking—but that doesn't necessarily mean your savings are at risk. If you have an appropriate allocation for your needs based on a solid retirement plan, your portfolio should be positioned to weather near-term bumps."

"Of course, if you haven't yet built up an adequate liquidity cushion as part of your retirement portfolio, now's a great time to start," adds Kyle Nelson, CFP^®, a senior financial planner at Schwab. "We suggest having two to four years' worth of living expenses in relatively stable investments like money market funds and high-quality short-term bonds or bond funds so you're not forced to sell riskier assets during a downturn."

"That's a real and valid concern," says Mike Townsend, managing director of legislative and regulatory affairs at Schwab. "The tariff situation has been especially erratic—announcements, exemptions, rollbacks—making it difficult for businesses to plan. And if companies are uncertain, they hesitate to hire, invest, or give clear earnings projections. That affects the broader economy.

"Tariffs could hit consumer goods prices especially hard, and once prices go up, they rarely come back down. But the bigger issue isn't inflation—it's how that uncertainty slows growth."

"But you're not entirely powerless," Rob adds. "Despite temporary volatility, the best long-term defense against inflation historically has been to keep a portion of your portfolio invested in stocks. Anything you don't need in the next few years can be invested to help sustain your savings."

"There's a lot of alarmist rhetoric about Social Security's potential insolvency in 2035, but the fixes are relatively straightforward and politically risky to ignore," Mike says. "There are many solutions on the table—including increasing the payroll tax rate and raising the retirement age for younger workers—but a reduction in benefits for current recipients is unlikely."

"The key is not to make emotional decisions based on headlines," Kyle adds. "Unless you absolutely need the income sooner or are in poor health, usually the smart move is waiting to collect your benefit until at least your full retirement age (between 66 and 67, depending on birth year)—or age 70 if you can, which is when you'll lock in the largest possible payment for the rest of your life."

"This is often near-retirees' first instinct, but in many cases it's not necessary," Kyle says. "A financial planner can help you run different scenarios that look at all the variables: Can you save a little more? Can we reduce risk in your portfolio as retirement gets closer? What would happen if you worked part time or pared back your lifestyle a bit?

"We stress-test each plan using thousands of market simulations—good, bad, and ugly—to determine whether it holds up even in rocky times. Often, clients are surprised to find their plan is more resilient than they thought."

"In my experience, retirees gain more flexibility and confidence in their retirement when they have a high-quality and personalized financial plan in place," Rob says. "The goal for most people isn't just to save as much as possible but also to live well and perhaps even leave a legacy. You've worked hard to accumulate these resources, so it's important to be thoughtful and remain in control of your finances—particularly during times of stress and uncertainty, neither of which are likely to abate anytime soon."