Morningstar said retirees facing inflation and market volatility should first trim withdrawal rates, citing 2025 research showing early portfolio losses in the first five years raise the risk of running out of money.
Small spending cuts can materially improve outcomes: skipping an inflation increase after a bear market helped sustain income across a 30-year retirement and could produce more lifetime income than ignoring market swings.
For portfolio withdrawals, the firm recommends taking cash from bonds or cash rather than selling stocks in down markets, while pre-retirees ages 60 to 63 can use 2026 "super-catch-up" contributions up to $35,750.
Morningstar also urged retirees to delay Social Security until 70 when possible, add inflation protection through TIPS or inflation-protected bond funds, and use low-income early retirement years for Roth conversions before RMDs begin at 73.