With markets in flux and inflation still eroding household budgets, financial advisors are reassessing how they assist clients in preparing for retirement. According to a new report from the Alliance for Lifetime Income, two-thirds of advisors have recently changed their approach to retirement planning, marking a significant shift.
“People aren’t just retiring anymore—they’re phasing out,” says certified financial planner Nathan Sebesta. He now encourages many clients to consider part-time work or gradual retirement, citing rising living costs, uncertainty about Social Security, and volatile markets as key concerns.
A growing focus is on sequence-of-returns risk—the danger of withdrawing funds during a market downturn, which can permanently damage a portfolio’s longevity. To mitigate this, advisors are urging clients to create “safe buckets”: one to three years’ worth of income stored in cash or liquid assets, such as CDs or high-yield savings.
Another trending tactic: guaranteed income. Interest in annuities and other income-generating tools is increasing as clients seek stability amid economic uncertainty. Advisors are also recommending more flexible spending strategies, such as using FSAs for pre-tax healthcare expenses and diversifying investments beyond traditional stocks and bonds.
Scott Bishop, another veteran planner, says the days of cookie-cutter advice are over. “There’s no magic withdrawal rate unless you first know how much you need and want to spend,” he emphasizes.
Bishop is also exploring private credit, real estate, and equity investments to help clients outpace inflation and generate reliable income. “Cash flow is king,” he adds.
Bottom line? Retirement planning today is less about hitting a number and more about building resilience. If your financial plan hasn’t evolved with the times, now might be the moment to rethink your strategy—and your future.
