A better retirement stress test would focus on the standard of living in retirement and how spending would need to change in times of market turmoil or heightened inflation.
Those nearing or in retirement are worried about what higher-than-expected inflation will mean. Here are a few things to consider to temper their anxiety.
Retirement planning is complex and risk in retirement is real. To improve the confidence clients have in working with an advisor, you need to prepare them for changes in retirement and avoid the talk of probability of failure and success. Ongoing adjustment-based planning aligns clients’ perceptions of risk in retirement with reality. This often results in small course corrections with many retirees finding they can spend more than originally planned. My guest, Justin Fitzpatrick, is here to discuss new research and technology that helps advisors paint a more realistic picture of what retirement could look like and guides clients through retirement more successfully.