The Smart Way to Plan for Retirement in an Unpredictable World

Retirement planning often feels overwhelming because many people focus on the wrong things. Market swings, inflation headlines, tax law changes, healthcare costs these dominate conversations. Yet most of these factors are completely outside of individual control. The key to building confidence in retirement is understanding what can be controlled and what cannot.

Nearly 87% of people worry they won’t have enough income in retirement. At the same time, almost 80% admit they don’t know how much they should be saving. That uncertainty fuels anxiety. The solution isn’t predicting the future it’s building a strategy that works regardless of it.

The first step is separating controllable factors from uncontrollable ones.

What You Can Control
Savings rate is one of the most powerful levers in retirement planning. Increasing contributions to 401(k)s, IRAs, or brokerage accounts has a direct and measurable impact on long-term outcomes. Two individuals earning the same salary can retire years apart simply because one saved consistently at a higher rate.

Asset allocation is another controllable variable. Choosing how much to invest in stocks, bonds, and other assets influences both growth potential and volatility. While market performance cannot be predicted, maintaining a disciplined allocation strategy reduces the temptation to react emotionally during downturns.

Retirement age also remains flexible for many people. The average retirement age in the United States is around 61, though many individuals plan to work until 67 or later. Even a few additional working years can significantly strengthen retirement readiness by allowing more savings, fewer withdrawal years, and higher Social Security benefits.

Lifestyle choices matter as well. Diet, exercise, and stress management influence health outcomes and longevity, which in turn affect retirement spending patterns. Improving skills, education, and earning potential during working years can also accelerate wealth accumulation.

What You Cannot Control
Markets fluctuate. Inflation rises and falls. Tax laws change. Healthcare costs evolve. These are realities of the economic system.

Inflation, for example, has significantly increased the cost of essential goods over the decades. Healthcare costs also tend to rise with age, with average monthly expenses increasing substantially between age 65 and 95. Attempting to predict exact outcomes in these areas often leads to paralysis or poor decision-making.

Market volatility is another major source of fear. Investors cannot control stock market performance, but they can control how they respond to it. Attempting to time markets frequently leads to missed recovery periods and long-term underperformance.

Strategic Planning Reduces Fear
A well-structured retirement plan accounts for uncertainty. Instead of trying to control external forces, a strategy focuses on flexibility.

Delaying Social Security is one example. Claiming benefits early permanently reduces monthly income, while delaying benefits increases lifetime payouts. For many retirees, coordinating Social Security timing with tax planning can significantly enhance long-term income stability.

Asset allocation and asset location also play critical roles. Asset allocation determines how investments are distributed across stocks, bonds, and other assets. Asset location determines which accounts hold which assets. For example, placing high-growth investments in Roth accounts may maximize tax-free growth, while holding tax-inefficient investments in tax-deferred accounts can reduce current tax burdens.

Tax strategies further enhance retirement income. Tax-loss harvesting in taxable accounts can offset gains. Diversifying between traditional, Roth, and taxable accounts creates flexibility in managing future tax brackets.

Savings Benchmarks by Age
While everyone’s situation differs, general guidelines can help measure progress. By age 40, individuals may aim to have three times their annual salary saved. By age 50, six times salary is often cited as a target. By age 67, ten times salary is commonly referenced as a long-term goal. These are not rigid rules, but they provide useful benchmarks.

Borrowing From Retirement Accounts
Questions often arise about accessing retirement funds. Borrowing from a 401(k) is typically not taxable if repaid according to plan rules. However, withdrawing from an IRA is generally considered a taxable distribution. Understanding these differences prevents costly mistakes.

Selling underperforming investments to offset gains can reduce taxes, but remaining invested is essential to benefit from long-term market growth.

The Real Shift in Mindset
The most powerful takeaway in retirement planning is this: stop trying to control the uncontrollable. Focus instead on savings discipline, asset allocation, tax strategy, and intentional planning.

Confidence in retirement doesn’t come from predicting markets. It comes from preparation. A comprehensive plan, whether built independently or with professional guidance, should balance controllable actions with realistic expectations about external risks.

The goal isn’t perfection. It’s clarity. By focusing energy on what can actually be managed, retirement planning becomes less about fear and more about strategy.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.