The math behind Social Security is well known. Benefits can be claimed as early as 62, but doing so permanently reduces monthly payments. Waiting until full retirement age increases the benefit, and delaying further raises it again until age 70. Over a long retirement, delaying can produce meaningfully higher lifetime income.That tradeoff is difficult to price intuitively. It is also one of the most consequential decisions retirees face, because it changes the structure of income, withdrawals, and risk at t ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Quick Summary The hard part isn't "can I retire." It's choosing the version of retirement you want, whether that means stopping work now and carefully managing the bridge years, or working longer to buy more flexibility around Social Security, taxes, and withdrawals. If you want a fiduciary to run both paths and show what each choice really costs over time, you can use SmartAsset to get matched with a fi ...

Core Insights - Financial advisors are adapting their retirement investment strategies due to a volatile market and economic uncertainty, with two-thirds reporting changes in their advice [2][9]. Economic Factors Influencing Changes - Rising inflation, uncertainty surrounding Social Security and Medicare, and overall cost-of-living concerns are prompting advisors to adjust their conversations and strategies [3][9]. Client Strategies and Recommendations - Advisors are encouraging clients to reconsider their withdrawal strategies and create buffers against market volatility, including phased retirement or part-time work for stability [3][4]. - There is an increased focus on building cash buffers and revisiting asset allocation models to mitigate sequence risk, which is the risk associated with the timing of withdrawals from retirement accounts [5][6]. Sequence Risk and Retirement Planning - Sequence risk can significantly impact retirees who rely solely on their portfolios, especially during bear markets, leading to potential alterations in retirement plans [7]. - Advisors emphasize the importance of understanding individual spending needs to create sustainable retirement plans, as there is no universal withdrawal rate applicable to all clients [8]. Asset Management Strategies - Financial advisors are recommending the creation of "safe buckets" that hold one to three years of income in cash or near-cash assets to buffer against market volatility [9]. - There is growing interest among clients in guaranteed income solutions like annuities, tax-efficient strategies, and flexible spending accounts for healthcare costs [10]. - Advisors are exploring alternative investments such as private credit, private real estate, and private equity to enhance yields and diversify portfolios beyond traditional stocks and bonds [11].