Whether you're nearing retirement or already retired, you may wonder how market volatility could impact your retirement plans—and your retirement income. It's natural to be concerned, but don't let anxiety drive your investment decisions. Instead, consider small steps you can take to adjust to this challenging environment.

Looking for professional advice? Review the ideas below that apply to you. As always, work with your financial professional if you're thinking about making any changes to your financial strategy.

Close to Retirement?

• Revisit your retirement expectations
  Start with your timing expectations. If you can keep working, you may want to postpone your retirement dinner for a year or two (a growing trend, according to AARP). Consider the impact your retirement timing will have on your Social Security benefits¹. Next, reset your lifestyle expectations. Select one luxury you'll enjoy right away, and prepare to postpone or simplify the others.
• Think of future years, not past weeks
  Retirees' life expectancies are at an all-time high. A 65-year-old who retires today may face 20 to 30 years in retirement. Don't spend too much energy worrying about the past 20 weeks; focus instead on the next 20 years. Your financial advisor can help you make decisions based on your long-term goals, not just your short-term challenges.
• Match future income sources to income needs
  Categorize your expenses into basic needs (such as housing), lifestyle needs (e.g., pastimes), and protection needs (e.g., healthcare). What type of investment will supply income for each type of need? Make sure you'll have a mix of sources for fixed income, guaranteed income, and income that can grow.
• Make healthy decisions
  Healthcare will be one of your biggest expenses in retirement. Sign up for Medicare as soon as you can (three months before your 65th birthday). Learn what Medicare does and doesn't cover. Since Medicare doesn't cover dental expenses, visit the dentist while you're still on your employer's plan. Also look into long-term care insurance options, so a health issue doesn't become a financial issue.

Already Retired?

• Remember your plan—and why you loved it in the first place
  Yes, you may need to make some changes and course corrections. But don't fix the parts of your portfolio that aren't broken. Work with your financial advisor to double check your portfolio for strategies such as diversification and asset allocation. It's never too late to make improvements.
• Look for new income
  Imagine your ideal part-time job, whether it's reminiscent of your career, pays you for your favorite hobby, or takes you down a new path. Could you take a job like this, or is it out of the question?
• Rework withdrawals
  Talk to your financial advisor about the withdrawal percentages you're taking from your retirement investments. If you increase your withdrawal annually, consider keeping it constant this year. If possible, reduce the percentage so that more of your investment can stay invested—with potential to grow if the market rebounds suddenly. Being invested then can help recover losses—see Are You Ready? 
• Cut costs
  First, list the costs you can cut entirely from your budget. Next, list your non-negotiable expenses—necessities and things that matter most. Finally, jot down all other expenses. This list is your biggest savings opportunity. Our workbook, Planning Retirement Income You Can Count On  may help. Can you swap your high ticket items for better values? For example, your doctor can recommend generic or lower-cost drugs that may be just as effective as the ones you may be taking.