Volatile markets spur demand for retirement income guidance, Janus Henderson reveals

Affluent Americans approaching or in retirement are balancing market turbulence with the need for reliable income, creating a window of opportunity for advisors to strengthen relationships.

A poll conducted among more than 1,500 investors at least 50 years old and with at least $250,000 in investable assets, the data reveals that three quarters are uneasy about how recent volatility might affect their retirement income.

The Janus Henderson Investors 2025 Investor Survey – Retirement Income and Planning also find that half of respondents say they checked their accounts more frequently following the sharp downturn triggered by April’s tariff announcements.

InvestmentNews has dug down into the report with Matt Sommer, head of Janus Henderson’s Specialist Consulting Group, who advises that investors should have a year’s worth of cash on hand to meet living expenses over the next year – something 57% of respondents said they have.

“This strategy provides peace of mind while avoiding the need to sell stocks at the worst time which is immediately after they decline in value,” he says. “There needs to be balance between short-term liquidity and long-term growth. We believe that about 12 months of cash on hand is a reasonable amount to have readily available without sacrificing returns.”

Income-paying investments

Sommer says that investors should also investigate adding dividend-paying stocks and guaranteed income solutions to their portfolios to ensure a steady stream of income despite the ups and downs of the market. This is something the survey showed investors have interest in.

“According to the existing body of research in the field of behavioral finance, individuals tend to prefer spending income rather than principal,” he notes. “We are not sure income preferences have changed, but rather, confirms what we have long suspected about retiree interest in dividend payers and guaranteed income solutions.”

The survey shows that 60% of respondents either own or plan to own dividend-paying stocks to support income needs. Annuities (54%) and international investments (44%) follow closely.

No action

More than one-third resisted making any changes, while one third cut discretionary spending, a quarter postponed major purchases, and one in five boosted emergency savings.

While many survey respondents have taken no action with their investments during recent volatility, Sommer says this is a sign of discipline, especially given market history.  

“As we experienced in 2000, 2022 and again in April of 2025, recent sharp declines were followed by new market highs, “he recalls. “Among the investors who took some action, most reevaluated their spending needs. This action is a much better response to market volatility than wholesale changes to investment portfolios.”

Advisory relationships

The survey shows that advisory relationships remain key, with 65% of surveyed investors working with a full-service advisor, and over half said communication increased during market swings. Satisfaction appears high investors gave their advisors an average referral score of 8.3 out of 10.

However, nearly one-fifth of advised clients aged 50+ still lack a formal retirement income plan, which Sommer says was surprising.

“We suspect that some of these individuals may have done some retirement income planning, but the experience was intangible and abstract,” he says. “The calculation of ‘how much can I spend annually’ isn’t enough. A big part of the retirement income planning process is to compare actual spending to planned spending and make the necessary mid-course corrections along the journey.”

Good communication is key, the survey found, with Sommer noting that those clients that were contacted by their advisor in April (during the tariff-induced volatility) were more likely to recommend their advisor to a friend or colleague compared to those that were not contacted at that time.

“These communications were often not about taking immediate action but rather checking in to see how investors were feeling about recent market events and if they had any questions. This type of emotional support is critical during periods of market volatility for building strong relationships,” he says.

Multiple accounts

Another survey finding is that most affluent investors maintain multiple financial relationships, with 89% holding accounts across several institutions and only a small fraction are looking to consolidate as most say there is no need.

Sommer suggests this complexity opens the door for advisors to act as “quarterbacks” in coordinating across accounts and institutions to simplify clients’ financial lives.

“We suggest advisors talk to their clients about ‘cash flow consolidation.’ This term means choosing one institution to receive all sources of income such as pensions, Social Security, required minimum distributions, dividends and interest, and the same institution for all uses of income such as bills, gifts, and other living expenses,” he says.

Sommer adds that with the technology that is available today, this strategy is easy to do even if investors choose to maintain assets at different institutions.

“The point is by using a single institution for cash flow purposes, it will be much easier to ensure the retirement income plan is being followed,” he explains.

Expanding horizons

Almost half of respondents said they are planning international investments, so does Sommer see a growing appetite for global diversification in retirement portfolios?

“Much has been made about home bias in recent years but we see that changing,” he says. “Dividends are paid in a different cadence overseas compared to the customary quarterly payout in the US. For retirees looking to further diversify their income sources, dividend payers based in Europe and Asia offer an interesting opportunity.”

Given the findings of the survey, Sommer says there is something advisors can do to differentiate themselves in retirement planning in an increasingly competitive market.

“We recommend advisor’s hone their ‘soft skills’ when it comes to income planning,” he says. “We have done research that suggests offering peace of mind and caring about me as a person beyond my investments are stronger determinants of client satisfaction compared to technical skills such as financial and investment planning.”