{"id":435103,"date":"2025-12-09T07:35:28","date_gmt":"2025-12-09T07:35:28","guid":{"rendered":"https:\/\/www.europesays.com\/us\/435103\/"},"modified":"2025-12-09T07:35:28","modified_gmt":"2025-12-09T07:35:28","slug":"inflation-tops-retirement-worries-for-americans-but-financial-advisors-disagree","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/435103\/","title":{"rendered":"Inflation Tops Retirement Worries for Americans, but Financial Advisors Disagree"},"content":{"rendered":"\n

Planning for retirement<\/a> means preparing for risks that could derail your financial security \u2014 but Americans and financial advisors don\u2019t agree on what those risks are. A new report from the Alliance for Lifetime Income<\/a> reveals a surprising disconnect that may be putting long-term security in jeopardy.<\/p>\n

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According to average Americans and their advisors, here\u2019s a look at the biggest retirement risks<\/a>.<\/p>\n

According to the report, consumers\u2019 No. 1 concern when it comes to retirement<\/a> is inflation, with 63% seeing this as a retirement risk. However, advisors don\u2019t list inflation as a top risk at all. Instead, they see the biggest retirement risks as outliving savings (56%) and market volatility (51%).<\/p>\n

\u201cDespite the obvious disconnect, both are right for different reasons,\u201d said Cyrus Bamji, chief strategy and communications officer at the Alliance for Lifetime Income. \u201cConsumers and advisors emphasize different risks because they feel, experience and understand them from different perspectives.\u201d<\/p>\n

Bamji noted that consumers feel inflation directly in their day-to-day lives and expenses, so to them, higher prices become the most immediate and tangible threat.<\/p>\n

\u201cIt\u2019s emotionally charged, and we\u2019ve been living through it for almost four years now,\u201d he said. \u201cUnfortunately, research shows that most people underestimate how long they\u2019ll live, which makes inflation feel like the dominant, immediate worry rather than a long-term planning issue.\u201d<\/p>\n

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The disconnect between what consumers and advisors see as the biggest risks could be because while consumers are focused on immediate issues, advisors are trained to look at a long-term retirement horizon for their clients \u2014 one that could last 20, 30 or more years. For them, outliving savings and market volatility are top of mind.<\/p>\n

\u201cThough inflation is a concern, from their perspective, the biggest threats are the various risks that can cause a retirement plan to fail over decades, starting with the potential for clients to outlive their savings<\/a>,\u201d Bamji said. \u201cIn other words, they see longevity and market risk as the factors that truly magnify financial strain over time.\u201d<\/p>\n

In short, consumers are right about what feels most threatening now, but advisors are right about what most often derails a long-term retirement plan. The real answer is to address both \u2014 protecting purchasing power while managing longevity and market risks is what ultimately enables a successful retirement.<\/p>\n

An ideal retirement plan accounts for both consumers\u2019 and advisors\u2019 top risks, so it\u2019s important to take inflation into account.<\/p>\n

\u201cAny good retirement plan should assume expenses to rise each year and build those increases directly into your income projections, investment approach and annual withdrawal strategy,\u201d Bamji said.<\/p>\n

He said that this could involve one or more of these approaches:<\/p>\n