Retirement concerns

Some factors that could lower your retirement savings

There is a lot of advice about how to save for retirement. But what about when you start to withdraw your savings? There are several risks that can put a dent in your retirement portfolio, but that’s where wise retirement planning may help.

There are three main risks associated with common economic factors that could possibly put a dent in your retirement income: market fluctuation, low interest rates and inflation. All three can pose serious threats to your retirement security, including your Social Security income. Consider these risks before withdrawing your savings and use informed retirement planning to alleviate your concerns.

Stock market fluctuation

Though the stock market has historically produced positive returns over the long term, as you near retirement, you may want to seek to avoid the risk of market downturns. While it might be tempting to turn completely away from equities to preserve assets, keep in mind that retirement can last for decades and you may still need to focus on growth. To help protect against volatility, you may want to consider a lower-risk, diversified portfolio that still allows for growth.

Low interest rates

As you near retirement, the traditional approach to allocation has been to add more bonds into your portfolio to help reduce stock market risk. However, in today’s low-rate environment, bonds might not generate enough income on their own. You might consider including equities and real assets, like commodities or real estate, as part of your retirement portfolio to help generate additional income.


The cost of retirement is likely to increase over time, which means that your lump-sum savings might not stretch as far as you thought. To protect against inflation as a component of your retirement planning, you might consider investing a portion of your savings in equities and real assets, which are designed to help hedge against this risk. Or, if you are purchasing an annuity, you might opt for one that offers cost-of-living-adjusted payments. Consider these strategies to help counteract the risk of inflation.