Affluent Investors Concerned About Retirement Amid Market Volatility
Nearly three-quarters of affluent investors surveyed in new research worry about the impacts of market volatility on retirement income.
The findings, unveiled in Janus Henderson’s 2025 Investor Survey – Retirement Income and Planning, show that U.S. investors age 50 or older, with a minimum of $250,000 in assets, are concerned over how April’s uncertain market conditions could influence their ability to generate retirement income.
RELATED – Market Volatility, Retirement Planning, Financial Fulfillment Among Top Client Concerns
Fifty percent of investors also recall checking their investment accounts more frequently during that time period, while 49% followed market news more closely.
“The market correction in April 2025 was jarring for many investors, with the S&P 500 Index dropping nearly 19% over a short period,” said Matt Sommer, head of Specialist Consulting Group at Janus Henderson.
He notes that while investors were uneasy over their retirement account balances, 36% did not take any action in response to the volatility. Instead, 34% reduced spending on discretionary expenses, 25% delayed a major purchase, and 22% added more savings to emergency accounts.
These actions emphasize the support that financial professionals provide, Sommer said.
“…Those who stayed on course were rewarded as equities recovered their losses before the end of June. The rapid fluctuations markets have experienced so far this year reinforce advisors’ critical role in helping clients stick to a plan and manage their emotions to avoid untimely investment decisions,” he commented.
Sixty-five percent of investors in Janus Henderson’s survey work with a full-service financial advisor, and over half say they increased communication with their advisor during April’s volatility.
Investors hold “comfort-first” attitude
Over half of investors surveyed hold a year or more of expenses in cash, highlighting a “comfort-first” mindset when planning for retirement, Janus Henderson finds.
Further, 64% of investors have added or plan to add to their cash reserves to guarantee adequate cash flow during retirement, the firm reports.
Others (60%) say they have made or plan to make investments in dividend-paying stocks to ensure proper cash flow through retirement, while 54% will add investments to annuities and 44% to international holdings.
Adding on to their “comfort-first” mindset is a reluctancy to consolidate retirement accounts, Janus Henderson finds. According to the report, 89% of investors have accounts at multiple financial institutions, with 33% who work with two providers, 29% with accounts at three providers, and 27% who work with four or more providers.
Most of these investors do not find a reason to consolidate, with 67% who say they see no need and 13% who say they’ve begun reducing the number of providers they work with.
This challenge creates an opportunity for financial advisors to play the quarterback role, serving as the central point of contact and coordinator across all accounts and institutions,” said Sommer.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
