Retirement Retirement Planning

8 Urgent Adjustments if You’re Trying To Retire Amid Trump’s Market Volatility

Making the right money moves can pave the way for a smooth transition into retirement.

By Sarah Sharkey

Edited by Chris Kissell

Updated May 8, 2025

It's no secret that the current economic situation is turbulent. In recent months, the stock market and other economic indicators have resembled the ups and downs of a roller coaster ride.

Those planning for retirement might feel especially nervous about the recent turmoil. Here are some money moves to consider if you are thinking of retiring amid President Donald Trump's market volatility.

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1. Talk to a financial pro

Start by getting input on your unique situation from a trusted financial professional. The right person can help you explore options for safeguarding assets as you move into the next chapter of your life.

Even if you are comfortable managing your finances without help, getting a second set of eyes on your plan is often a good idea. Although you might not follow every suggestion made by a financial advisor, you can use their input as a guide when making money moves.

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2. Understand — and cut — your expenses

Before you plunge into the deep end of retirement, make sure that you understand all of your expenses. Adding up all costs can give you a better idea of how much you'll need to live comfortably each year.

Once you have an idea of what your expenses are, decide if you need to cut back. For many soon-to-be retirees, the recent market downturn may mean cutbacks in spending during the early years of retirement.

3. Reconsider your withdrawal rate

Your withdrawal rate represents the rate at which you pull money out of your portfolio to cover your expenses during retirement. Many experts recommend sticking to a withdrawal rate of no more than 4% of your portfolio each year.

For example, if your investment portfolio is worth $1 million, a 4% withdrawal rate amounts to an income of $40,000 per year.

However, during economic uncertainty, you might choose to lower your withdrawal rate. For example, you might drop your withdrawal rate from 4% to 3.5%. Although this means cuts to spending for now, it could help to preserve your portfolio's value over the long term.

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4. Make sure you have an emergency fund

During retirement — or at any point in life, for that matter — it's critical to have an emergency fund. A stash of emergency cash gives you some financial breathing room. If things don't go according to plan, you can lean on emergency savings.

For example, imagine the market takes a dive during the early years of your retirement and your expenses grow. Instead of selling stocks when they are down simply so you can generate cash, you could use your emergency fund to get through the downturn.

5. Check your asset allocation

Asset allocation represents the way you split up your assets in a portfolio. For example, you might have a portfolio of 60% stocks and 40% bonds.

Regardless of your current split, a period of market volatility is a good time to re-evaluate your asset allocation.

Most investors have an asset allocation that reflects their risk tolerance. As you head into retirement, it's natural to lower your risk tolerance a bit. That might mean shifting the weight of your portfolio toward bonds and cash equivalents while decreasing how much money you have invested in stocks.

6. Diversify your investments

Putting all of your eggs in one basket tends to increase risk. One solution to this problem is to diversify your investments by building a portfolio that invests in a wide range of asset classes.

For example, if the bulk of your portfolio is invested in a single stock, you might consider taking at least a portion of that money and investing it in an index mutual fund that tracks the stock market as a whole.

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7. Decide whether to file for Social Security

As you head into retirement, filing for Social Security benefits can provide you with crucial income. But precisely when you choose to file can have a big impact on the size of your monthly benefits check.

Although you can file as early as age 62, filing later generally leads to a larger monthly payout.

If you are struggling to make ends meet, filing for Social Security in the early days of your retirement might make sense. But if you can keep yourself afloat through other means, delaying filing could help you out in the future.

8. Consider delaying retirement

If your financial situation is far from stable and the current economic situation is adding more turbulence, consider delaying retirement for now.

Putting your retirement off for another year or two gives you more time to save up for the golden years ahead.

For those with an enjoyable job and a stable paycheck, delaying retirement might be the right move. But if you aren't able to stick it out with your current employer, consider transitioning into part-time work so you can earn extra money while also enjoying some of the freedom that comes with retirement.

Bottom line

As you set yourself up for retirement, it's critical to take current economic conditions into account. Today's turbulence might make it necessary to adjust your retirement plans.

Keep an open mind as you explore potential changes to your strategy. The right money move now could make all the difference later.

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