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Affluent investors over the age of 50 are more worried about their retirement income prospects than might be expected. Notably, three-quarters indicated they are worried market volatility could impact their ability to generate income in retirement, according to Janus Henderson’s 2025 Investor Survey.
Market jitters often drive investors to seek comfort and stability in cash, said the report. More than half of retirees reported they are holding a year or more of expenses in cash. Advisors should view this as an opportunity to deliver thoughtful retirement income strategies to clients and help them resist common behavioral tendencies – particularly the desire to seek comfort and peace of mind – so they can make better decisions, said the report.
“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. “But 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.”
The majority of investors said they have made or are planning to make investments in dividend-paying stocks to ensure they have adequate cash flow in retirement. The second most popular investment for meeting expected cash flow needs in retirement is annuities, with a combined 54% of respondents having made or planning to make this investment, followed by international holdings, according to the survey.
Nearly two-thirds of investors surveyed said they work with a full-service financial advisor, and more than half of those said their advisor increased communication with them during this year’s volatility. However, 18% of advised investors over the age of 50 said they have not received a retirement income plan. That hasn’t dampened attitudes about financial advice, as most respondents said they would likely refer their advisor to a friend.
The report found that subtle shifts in how information is presented can have a significant impact on outcomes. For example, investors were more likely to recommend delaying taking Social Security when the impact was framed as a loss rather than a gain.
Nearly all affluent, older investors have investment accounts at multiple financial institutions, including 33% who work with two providers, 29% who work with three providers, and 27% who work with four or more providers, the report said. When asked about their views on reducing the number of financial institutions they work with, two-thirds of affluent investors said they see no need, and just 13% report they have begun reducing the number of providers.
“For retirees, maintaining investment accounts at multiple financial institutions often makes tracking cash inflows and outflows difficult,” said Sommer. “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.”
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