Americans' retirement savings have never been larger, and that is pushing financial advisors toward a harder question than how to grow them: how to spend them. Total U.S. retirement assets reached $51.2 trillion as of June 30, 2026, up 7.9% from the end of March, according to the Investment Company Institute. That builds on the record set in 2025, and retirement savings now account for 33% of all U.S. household financial assets.
Advisors say retirement withdrawal strategies built around portfolio returns alone are falling short as more money moves into distribution. Richard Keetley, a certified financial planner and executive vice president at QL Wealth Advisors of Janney Montgomery Scott in Lutherville, Maryland, said a peak account value should be treated as a milestone, not a plan. "It is easy to follow a financial plan and withdrawal strategy when markets are high. What matters most is having both in place when they are not," he said.
The transition from accumulation to distribution requires advisors to understand a client's full financial picture, coordinating taxable, tax-deferred, and Roth assets so income is drawn from the right account at each stage. Angelo Esposito Jr., a CFP and founder of Harbor View Private Wealth in Atlanta, said every withdrawal plan should rest on a comprehensive financial plan covering income goals, allocation, risk tolerance, and legacy objectives. He warned against overloading on income-producing investments, since rising rates can hit income-oriented assets across several asset classes at once.
Bonnie Treichel, an ERISA attorney and founder of Endeavor Retirement, said planning should start well before age 55 or 60. Which account a client taps first can matter as much as how much they take, including weighing Roth versus traditional accounts and preparing for required minimum distributions. "Fees and benchmarks absolutely matter, but they are only inputs," she said. "Near retirement, the more important question becomes: 'Is my portfolio and overall plan capable of supporting the life I want to live?'"
Keetley echoed that sentiment, noting that an index never retires, takes a withdrawal, or funds a lifestyle. Clients should instead judge whether their strategy produces sustainable after-tax income and manages risk. Esposito added that benchmarks look in the rear-view mirror, while clients live in real time, where financial decisions carry emotion and stress. The emotional hurdle is well documented: a Corebridge Financial survey found only 28% of pre-retirees and retirees are comfortable with their savings declining to cover living expenses, and 70% consider it very important that their nest egg not shrink.
Treichel recommends anchoring essential expenses with guaranteed income and covering discretionary spending from investments. "As an advisor, you might recommend your client pair guaranteed sources, which will cover essential expenses, with investment-based income, which provides growth and flexibility," she said. Many workplace retirement plans now offer new guaranteed income solutions, some with automatic enrollment. She also favors guardrails, a withdrawal method that sets upper and lower spending limits and adjusts payouts when a portfolio crosses them.
Esposito said the shifting relationship between asset classes has forced changes at his firm. "In recent years, stocks and bonds have moved together far more often than investors were accustomed to, so traditional portfolios need additional strategies and asset classes to manage risk and generate income," he said. At Harbor View, they've incorporated options strategies, private credit, structured products, and real estate to produce portfolio income and reduce volatility, though each carries its own risks and isn't right for every client.
Keetley takes a structural approach, separating near-term spending money from long-term growth assets and supporting the former with staggered bond maturities. This approach helps clients avoid selling equities in a downturn. As the industry evolves, advisors are increasingly focusing on behavioral coaching and holistic planning rather than just investment returns. For more on how advisors are adapting, see record ETF inflows and fear of spending retirement savings.
