Chief Retirement Strategist
“Conducting portfolio reviews now will give clients time during the year to make any needed adjustments based on their age, savings and spending goals,” counsels Michael Conrath, J.P. Morgan’s Chief Retirement Strategist.
Here are five strategies to help your clients keep their retirement plans on track in 2026:
1. Do the math
Too few Americans calculate what it will take to maintain their current lifestyle in retirement. Help your clients fill in the blanks by showing them:
- An appropriate income replacement rate—one that factors in how much needs to be funded from personal savings
- Estimates of how much Social Security is likely to cover
- Reasonable assumptions about return rates and inflation over time
- Adjustments they’ll need to make to keep or get their retirement plans on track
2. Plan for fluctuations in spending
J.P. Morgan research reveals that six in 10 retirees experience a 20% or more annual shift in spending during the first three years of their retirement.1 Moreover, more than half of retirees between ages 75 and 80 continue to experience this spending volatility from year to year.
Planning strategies that include flexible solutions and guaranteed lifetime income options can help clients manage sequence of return risk as they near retirement and provide funds for fixed expenses over time.
3. Diversify sources of retirement income
Individuals often hold much of their retirement wealth in tax-deferred vehicles, typically traditional 401(k) plans. While this can be a powerful savings option, the tradeoff is that distributions generally come with income-tax consequences.
Having a mix of taxable, tax-deferred and tax-free (such as Roth) accounts can give retirees more flexibility and control, both over their retirement income sources and the tax impact on distributions.
This may be a good time to discuss diversification and Roth conversions. Some practitioners think the relatively low tax rates in the U.S. provide a timely opportunity for clients to shift a portion of their tax-deferred assets to tax-free Roth accounts.
4. Consolidate assets
Many clients think they are diversifying when they spread their wealth across multiple institutions. But, in practice, this tactic may provide less transparency, require more effort and coordination and lead to duplicative or conflicting efforts.
Explain to clients that consolidating investment accounts under a single advisor can provide a fuller picture of their finances and allow more comprehensive and targeted retirement-income planning. Further, consolidation simplifies Required Minimum Distribution (RMDs) calculations, streamlines recordkeeping and makes beneficiary management easier.
5. Stay invested (and stay calm)
Retirement planning is generally a long-term journey that requires diversifying beyond cash. However, during periods of volatility, or when equity valuations appear high relative to history, clients may be tempted to time the markets.
Advisors are well positioned to help clients understand that market timing is extremely difficult, even for savvy investors, because it’s not just about being right once—as in knowing when to sell. A market-timing investor must be right twice—knowing when to sell and when to buy back in.
Exhibit 1 (below) illustrates that the worst days in the market are often followed by the best days—and missing out on those days’ gains can have dire consequences for a portfolio.
If a client’s long-term goals have not changed, helping them resist the short-term urge to abandon their long-term plans can lead to better retirement outcomes.
For more information, please refer to the Guide to Retirement.