Retirement planning isn’t just about saving enough — it’s about making sure the money you’ve worked so hard to build is set up to last through the years ahead. Markets shift, healthcare costs rise, and life can throw curveballs. That’s why it’s so important to put your portfolio through a few “stress tests” before you transition from earning to relying on your savings.

Here are five key stress tests to help you see if your portfolio is truly retirement-ready:

1. Market Downturn Test

Ask yourself: What happens if the market drops 20% in the first few years of retirement?
This scenario, often called “sequence of returns risk,” can dramatically impact the longevity of your portfolio. Running projections under a downturn scenario helps you determine if your withdrawal plan is sustainable even in tough markets.

2. Longevity Test

Today’s retirees are living longer than ever. Many financial plans assume 85–90 years of life expectancy, but what if you live to 95—or beyond? Stress test your plan by adding extra years of retirement to help ensure you won’t outlive your money.

3. Healthcare & Long-Term Care Test

Medical expenses can be one of the biggest wild cards in retirement. Consider: What if you or your spouse need extended care later in life? Factoring in the potential for long-term care costs helps you prepare for one of the most significant financial risks retirees face.

4. Inflation Test

Even at “normal” levels, inflation quietly erodes purchasing power over time. But what if inflation stays higher than expected for the next decade? Testing your plan against prolonged inflation helps you see if your income sources and investments can keep pace with rising costs.

5. Spending Shock Test

Unexpected expenses — home repairs, helping adult children, or major travel goals — can throw off even the best plans. Stress test your portfolio by adding one-time or recurring expenses to see how much flexibility your finances really have.

The Bottom Line

A retirement plan isn’t a one-and-done exercise. It should be a living strategy that adapts as life and markets change. Running these five stress tests helps you identify potential risks now, so you can adjust your portfolio and spending plan before they become problems.

If you’re unsure how your portfolio would hold up, we can help you run these tests and create a retirement plan that gives you confidence.

Philip Lockwood | Founder + Managing Partner

Address | 1501 Ingersoll Ave. Suite 201 Des Moines, IA 50309 Phone | 515-274-8006

Email | Plockwood@parklandrep.com Website | Lockwood Financial Strategies Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC