Can You Still Retire in a Chaotic Market? (Yes, and Here’s How)

Yes, You Can Retire in a Chaotic Market

Retirement planning can feel overwhelming when markets are up one day and down the next. But here’s the good news: with the right plan and mindset, retiring in a chaotic market is still possible. In fact, it’s something we help clients do every day.

In our latest “Wealth Wednesday” video, we talk about how people can feel more confident stepping into retirement, even when the economy feels shaky.

1. Preparation Is Key

When people ask, “Is now a bad time to retire?” The answer is clear: it’s all about being prepared. No matter what the market is doing, a solid retirement plan helps you stay on track.

It’s normal to feel nervous—especially with headlines screaming about inflation, interest rates, or stock market drops. But emotional decisions can often lead to mistakes. Instead, planning ahead can make retirement feel less scary and more doable.

2. Use a Cash Buffer (a.k.a. Bucket Strategy)

One way to protect your retirement from market swings is with a cash buffer. This means keeping one to four years’ worth of essential expenses in cash or something similar.

Here’s why this works: when the market drops, you won’t have to sell investments at a loss to pay your bills. Instead, you can tap into your cash while your investments recover. This simple strategy gives people a lot of peace of mind—and better sleep.

3. Be Smart About Income Timing

When you retire, you’ll likely get income from different sources—Social Security, savings, part-time work, or maybe even a pension. How and when you use those income streams can make a big difference.

One big tip? Don’t rush into taking Social Security. If you can wait past age 62, your monthly check grows each year—by about 8%—until age 70. But keep in mind, if your savings drop a lot in the market, it might still make sense to start benefits earlier to reduce stress on your accounts. Flexibility is key.

4. Consider Working Part-Time

Retirement doesn’t have to be all-or-nothing. Many people choose to work part-time in lower-stress jobs. This can help reduce the pressure on your retirement savings while keeping you active and engaged.

Working just a few hours a week can go a long way in helping your savings last longer.

5. Don’t Let Emotions Lead Your Decisions

One of the biggest mistakes people make during tough markets is acting on emotion. Panic-selling, making drastic changes to your investments, or withdrawing too much too soon can all hurt your retirement plan.

That’s why having a financial advisor can make such a big difference. A good advisor helps you zoom out and see the big picture—rather than reacting to today’s headlines.

6. Stress Test Your Plan

A great way to feel more confident is to “stress test” your retirement plan. This means running your numbers through different scenarios—like a major market crash early in retirement—to see how your plan holds up.

Thanks to powerful software, we can now model all kinds of “what ifs” and show you the potential impact on your retirement income. If your plan still works after those tests, that’s a great sign you’re ready to retire—chaotic market or not.

7. Remember: Retirement Lasts Decades

A lot of retirement fear comes from short-term thinking. But most people retire in their early 60s and live well into their 80s or 90s. That’s 20 to 30 years of retirement income you’ll need.

So don’t make big changes based on what the market is doing today. Think long term. Stick to your plan. And remember: you’re in this for the long haul.

Need a Plan? We Can Help

At Commonwealth Financial Services, we help clients like you create and adjust retirement plans every day. Whether you’re ready to retire now or just want a second opinion, we’re here to help.

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