Economic volatility seems like a permanent fixture in the background of our lives. Whether it's inflation, rising interest rates, market swings, or geopolitical unrest, these forces challenge even the most disciplined retirement plans.

If you're wondering how to plan for retirement in times like these, you're not alone.

While we can't predict the future, we can plan for it.

Here’s how to build a retirement strategy designed to adapt, regardless of the economy.

Start with your goals, not the markets

Your retirement plan should start with your vision for the future.

Ask yourself:

• When do I want to retire?
• What does a comfortable retirement look like?
• How much will I need each year?
• Where will I live?

Planning around what you can control is the antidote to being whipsawed by economic forces.

It also helps your advisor tailor recommendations based on your timeline, lifestyle needs, and legacy goals, rather than on speculative market calls.

Embrace flexible planning

Flexibility is one of the most overlooked virtues in retirement planning.

Rigid plans assume the future will unfold exactly as expected. Flexible plans anticipate change and build in room to adjust.

That might mean:

• Keeping a larger-than-usual cash cushion during volatile markets
• Postponing retirement if necessary
• Adjusting your withdrawal rate based on market performance
• Working part-time for a few years to reduce portfolio pressure

A flexible mindset doesn’t mean settling for less. It means staying open to different paths that still lead you to your goals.

Stress-test your plan

Stress-testing your retirement plan is like running it through bad weather.

Ask your advisor:

• What happens if inflation averages 4% instead of 2%?
• What if markets return only 4% annually for a decade?
• Can I still retire if health care costs rise faster than expected?

A well-constructed retirement plan should still hold up under less-than-ideal scenarios. Stress-testing identifies vulnerabilities before they become crises.

Diversify like your future depends on it

Diversification isn’t just an investing cliché. It’s a survival strategy.

Avoid placing all your bets on one asset class, sector, or region. Instead, build a globally diversified portfolio that includes:

• U.S. and international equities
• Bonds of varying maturities
• Real assets like real estate or commodities (if appropriate)
• Inflation-protected securities, where suitable

Diversification doesn’t guarantee profits. But it does reduce the chance that one bad event sinks your entire retirement plan.

Don’t overlook inflation

Retirees are especially vulnerable to inflation. Rising prices erode the purchasing power of fixed incomes.

If you’re already retired, or close to it, consider:

• Allocating part of your portfolio to Treasury Inflation-Protected Securities (TIPS)
• Reviewing annuity options that offer inflation adjustments
• Maintaining some equity exposure for long-term growth
• Evaluating health care costs carefully, since they often rise faster than overall inflation.

Inflation protection isn’t about guessing future rates. It’s about building resilience into your plan.

Avoid overreacting to headlines

When markets drop or inflation spikes, the instinct to act can be overwhelming. But rash moves often do more harm than good.

Consider:

• Most downturns are temporary, but losses from panic selling are permanent
• The best days in the market often follow the worst days. Missing just a few can reduce long-term returns dramatically
• Timing the market consistently is extremely challenging, even for professionals.

Your greatest asset in volatile times may be emotional discipline. A fiduciary advisor can help you stay focused on the long term.

Revisit your withdrawal strategy

The sequence in which you withdraw from accounts, especially in a down market, can significantly impact the time your money lasts.

Work with your advisor to:

• Prioritize tax-efficient withdrawals (e.g., from taxable accounts before tax-deferred)
• Use a dynamic withdrawal rate that adjusts based on market performance
• Strategically harvest losses and rebalance during downturns

Also, consider delaying Social Security benefits if possible. The longer you wait (up to age 70), the higher your monthly benefit.

Keep taxes in mind

A high-income year can trigger surtaxes, Medicare premium increases, and higher marginal rates.

Use tools like:

• Roth conversions during low-income years
• Qualified charitable distributions if you’re over 70½
• Strategic asset location to reduce tax drag (e.g., bonds in tax-deferred accounts)

Taxes are one of the most controllable parts of your retirement plan, especially with expert guidance.

Protect against the unexpected

Economic uncertainty is only part of the equation. You have to plan for personal curveballs.

Here are some ways to prepare:

• Maintain adequate health, disability, and long-term care insurance
• Keep estate plans current and accessible
• Choose a trusted person to act on your behalf in a financial or medical crisis
• Consider guaranteed income options if you’re concerned about outliving your money

Having contingency plans for life’s unknowns can be as important as watching your portfolio.

Partner with the right advisor

Planning for retirement in an unpredictable world is complicated. The right financial advisor can help you:

• Identify blind spots
• Build a customized, adaptable plan
• Provide accountability and emotional support
• Keep your long-term goals front and center when short-term noise is deafening

Look for an advisor who:

• Acts as a fiduciary
• Offers evidence-based investment strategies
• Helps with tax, estate, and insurance planning
• Communicates clearly and regularly

Retirement is too important to leave to guesswork or to handle alone.

Final thoughts

You can’t control the markets, inflation, or the economy.

But you can control how you plan.

Focusing on your goals, staying flexible, and working with a trusted advisor will put you in a far better position to retire confidently.