Market bumps can bruise your clients' retirement
A market downturn in the first 5 years of retirement can increase the probability of running out of money by 60%.
Source: Morningstar Research
VOLATILITY
Understanding Volatility Risk
Volatility risk refers to the potential impact of unpredictable market fluctuations on a client's retirement portfolio. Unlike inflation or longevity risk, which tend to follow longer-term trends, volatility can be sudden, emotional, and often amplified by media headlines. The risk is not just about what the markets do; it's about how clients react.
Volatility can erode client confidence, prompt impulsive decisions, and most importantly, undermine key pillars of retirement security: predictable income, long-term growth, and asset longevity.
As a financial advisor, your clients are looking to you to ease their fears and keep them on a steady path. We're here to support you with the tools and resources on this page.
60%
41.25%
The average loss during each of the four bear markets since 2020.
Source: J.P. Morgan Asset Management, On the Bench, 09.25
Resources
Articles
More articles and tools
Navigating market volatility
Effective tips and strategies for communicating with clients about market volatility.
Sequence of returns flyer
When your clients retire can be as important as how much they've saved.
Retirement income worksheet
Use with your clients to estimate their day-to-day expenses and income sources in retirement.
Eye-grabbing stats to share with clients
Use this infographic with your clients to give them an easy, visual way to understand the impact volatility risk could have on their retirement.
Three-Step Retirement Income Review
Knowledge is the first step to a solid plan. Estimate your clients' essential retirement expenses to determine how much guaranteed income they will need in retirement.