CAN I STILL RETIRE if the markets are experiencing lots of ups and downs? That’s a question many people ask in uncertain market environments like today’s. Markets that swing from new highs to unsettling lows and (often) back again, can cause them to wonder: Will their money still be there when they need it? Could they outlive their assets?

“When the realization hits that your post-work income will be dependent to a large extent on how the markets are performing, every market swing can be a cause for concern,” says Anil Suri, head of Asset Allocation and Portfolio Construction for the Chief Investment Office, Merrill and Bank of America Private Bank. The good news is that markets, historically, recover fully and continue to grow.¹

Yet for those eyeing retirement, an extended slump could have more serious consequences. “What might feel like a blip for a younger investor could do lasting damage to a portfolio of someone starting to use their savings and sell investments when values are low,” says Suri.

“While extended downturns are infrequent, the timing is unpredictable,” Suri says. “So, it’s important to plan for that possibility.”

Here are three strategies to consider:

1. Create a bond ladder

Interest rate fluctuations can challenge bond investors who seek steady retirement income that keeps pace with inflation and other forces. You might consider creating a bond ladder — a series of bonds with short, medium and long-term maturities.

Positives: You’ll receive regular income and, as each level of bonds matures, you can invest in new ones at current yields or use the cash for liquidity. “Having part of your money in these assets could help ensure that, if a two- or three-year downturn occurs, you can weather it,” Suri says.

2. Postpone Social Security

It’s tempting to start Social Security at 62 (the earliest age you’re eligible), but holding off could ensure a higher income stream for a long retirement.

Positives: Waiting until the full retirement age of 66 (67 for those born in or after 1960) or beyond could boost your monthly benefit by about one-third, Suri says.² Of course, much depends on your current cash flow and income needs. “This is a deeply personal choice,” Suri adds. “But if you can make it work, waiting may be a good option.”

3. Consider annuities

“Like Social Security, a lifetime annuity can offer reliable income, no matter how markets perform or how long you live,” Suri says.

Positives: Annuities come in many types and sizes to cover specific income gaps. “Say you look at your income sources and you realize another $10,000 per year would give you greater confidence to cover necessary expenses in retirement,” he says. “You might buy a $10,000 annuity spread out in monthly installments for the rest of your life.” There are tradeoffs. Generally, the higher the benefit, the higher the cost, and money you invest to fund the annuity won’t be available to meet current liquidity needs. So be sure any annuities fit with your overall financial goals, Suri notes.

While these and other approaches could help stabilize your income picture, none is a complete answer on its own, he cautions. “Portfolio diversification, both across and within asset classes, is essential to weathering volatility,” he says. And an advisor can provide personalized planning while helping you establish healthy income streams for a long retirement.

Keep reading

For more tips to hone your retirement strategy, be sure to check out 3 steps to help your money last in retirement and Do you have a retirement spending plan?

¹Chief Investment Office, “Eyes on the Road Ahead,” April 2025.

² Chief Investment Office calculations based on Social Security Administration data accessed May 2024.

Important disclosures

The opinions expressed are as of August 4, 2025 and are subject to change.

Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.  

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).

Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. government. 

All contract guarantees or annuity payout rates for annuity contracts and all guarantees and benefits of insurance policies are backed by the claims-paying ability of the issuing insurance company. They are not backed by Merrill or its affiliates, nor does Merrill or its affiliates make any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

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