The market of 2025 is getting unpredictable. Interest rates are still volatile, inflation is still hurting consumer spending and world events are throwing more pendulums into the mix. There is a lot of rout in the stock market and a lot of retirees are concerned about the value of their nest egg. But fear is not a tactic, it is a planning.

The threats to your retirement funds

If the markets tank, it can diminish your value and you cannot replace the lost money. Inflation makes money buy less, so your savings will no longer go as far. And with economic volatility, retirees that depend on withdrawals need to be careful how much and when they withdraw. If you don’t have a plan, you’ll end up spending more than you planned to save.

Top ways to protect your nest egg

1. Diversify your investments

Consider your portfolio as a plate of balanced food, not 100% carbs and 100% protein but something that fuels you. Diversification spreads risk among different asset classes like stocks, bonds and alternative investments. Stocks promise growth; bonds promise security. There is also the financial cushion provided by annuities and land. A balanced mix can buffer from market crashes.

2. Adjust your withdrawal strategy

The “4% rule” says to sell 4% of your portfolio each year to receive an income. But when markets are going nuts, it is better to wait it out. Reduce withdrawals in bear markets, as it prevents you from selling investments at a loss. If the market is hot, you might buy in a little more. The trick is to be flexible so that your savings can last a long time.

3. Delay Social Security if possible

If you can, working until you’re 70 to file for Social Security will add extra money to your monthly check. This extra income is a regular, inflation-adjusted income to offset the rest of the debt. In the unknowns of 2025, a guaranteed income stream is great protection against a bear market.

4. Use inflation-protected financial products

Price increases squander the benefit of cash savings. Treasury inflation-protected securities (TIPS) and inflation-rated annuities hold buying power in check. Fixed index annuities give you market participation without the downside. These can provide continuity during uncertain economic conditions.

5. Leverage fixed index annuities

Fixed index annuities (FIAs) are the perfect mix of growth and security. These annuities give retirees access to market appreciation while locking in losses. FIAs have a fixed floor unlike market investments so you will not lose your savings during the bear markets. So they can be used effectively to ride out the volatility of the markets and still earn a regular pension in retirement.

6. Create alternative income streams

Supplemental income saves you money. Have rental properties, a consultancy, part-time jobs or making a hobby income. These bonus incomes will pay your bills daily without eating away at your investment portfolio.

7. Reduce nonessential expenses

Retirement is supposed to be fun, but overindulgence destroys your nest egg. It is very inexpensive to simplify, plan your trips and change insurances. Small steps can mean the world in the long run.

8. Revisit your risk tolerance

The thing that worked for you in your 50s may not be good for you in your 70s. Make changes to your investment approach based on risk appetite and the state of the markets. Consult with a financial advisor to make sure your portfolio meets your retirement plan.

Staying proactive in uncertain times

Preparation is not panic if you’re going to be in a market with high volatility. Well-planned money is what ensures your retirement security, no matter how bad the economy gets. Making frequent corrections and check-ins on your plan keeps your nest egg safe.

Conclusion

Market downturns are a reality of life on the financial front, but you don’t have to let them destroy your retirement. Using a balanced approach, monitoring withdrawals, and taking advantage of financial products such as fixed index annuities and other sources of income, you can stay on top even when the climate isn’t ideal. Make sure you take action now and the nest egg will stay intact for you so you have peace of mind and financial security going into retirement.

Lyle Boss, The REAL BOSS Financial, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West states. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.