If you’ve ever felt like you’d be more comfortable with less money in stocks, you’re not alone. Many people approaching or in retirement naturally feel cautious about market volatility. After all, when you’ve spent decades saving, the idea of losing value right before or during retirement feels unsettling.
Interestingly, a recent study from Boston College’s Center for Retirement Research found that this instinct shows up clearly in the data. When asked, near-retirees and retirees said they would prefer to hold less than 40% of their portfolios in stocks. When researchers looked at the participants’ actual 401(k) allocations, the numbers told a different story: on average, participants were closer to 45% in equities.
Why the gap? It’s not because people are ignoring their preferences. Instead, it’s largely the result of target-date funds. These funds—the default option in many 401(k)s—automatically keep investors in a higher percentage of stocks than they might choose on their own. The idea is that investors often err on the side of being too conservative, so the fund’s design nudges them toward a mix that offers more long-term growth potential.
This mismatch isn’t necessarily a bad thing. In fact, it highlights one of the most common tensions in retirement planning: the trade-off between comfort and necessity. On one hand, investors want a portfolio that feels safe and steady. On the other, retirement plans often need meaningful exposure to stocks to provide enough growth to outpace inflation and sustain a lifestyle over decades.
Striking that balance is easier said than done. Too much risk, and you may feel constantly worried about your portfolio’s ups and downs. Too little risk, and you may find that your savings can’t stretch as far as you need.
That’s where planning makes the difference. A financial planner can go beyond one-size-fits-all defaults to model how different allocations would play out against your personal retirement goals. Stress-testing your plan helps reveal not just what feels comfortable today, but what will actually work to support your future.
Because in the end, retirement success isn’t about following generic rules of thumb or blindly trusting defaults. It’s about finding the balance between risk and reward that gives you both financial security and peace of mind.
If you’d like to see whether your portfolio is truly built to last—and built for comfort—contact us today.