I’m a Financial Planner: 4 Ways To Stress Test Your Retirement Plan in 2026
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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Taking a “set it and forget it” approach to retirement planning works in some areas, such as setting up automatic contributions to retirement savings so you don’t even have to think about it. But in other areas, it’s not the right approach.
One of those areas has to do with actively “stress testing” your retirement plan to identify weak points and make adjustments as needed, according to Rob Williams, head of financial planning and wealth management research at Charles Schwab.
“Even when your retirement plan appears solid on paper, revisiting and stress-testing it regularly — especially at the start of the year — can help prevent small vulnerabilities from growing into significant problems,” Williams told GOBankingRates in an email. “Markets ebb and flow, personal circumstances change, but a proactive check-in can help ensure your plan endures whatever 2026 and beyond may bring.”
Here’s a look at four ways to stress test your retirement plan in 2026.
Also see the simple retirement advice financial experts are giving to clients in 2026.
Account for Market Downturns
This is especially important if you’re nearing retirement age or have recently retired. As Williams noted, market downturns during these periods of life can “significantly increase” your risk of running out of money.
“Stress testing helps quantify this risk by modeling thousands of potential market and inflation scenarios to show how different paths could impact your retirement portfolio,” he said. “From there, you can determine whether you need to make any adjustments — such as refining your investment strategy, increasing savings, or delaying retirement even by a year — to ensure your savings last.”
Factor In Longevity and Long-Term Care
As Americans live longer, they need to make sure their retirement savings also last longer. This can be a challenge due to higher healthcare costs, which can easily run into six figures a year as you get older.
“Long-term care insurance can help alleviate some of this expense, but it too may come with a hefty price tag,” Williams said. “Stress testing helps you see how your plan would fare in the face of higher-than-expected long-term care costs and determine whether you’re adequately protected.”
Plan For Unexpected ‘Spending Shocks’
Large, unplanned expenses “can quickly derail a retirement plan,” according to Williams. These expenses might include everything from major healthcare costs to home repairs or family needs.
“A strong stress test incorporates surprise expenses to help investors see how resilient their plan is when faced with these spending pressures, and whether adjustments are needed to stay on track,” he said.
Model Potential Changes to Taxes or Social Security
Retirees often rely on Social Security and tax assumptions that can easily shift over time, whether the shifts include claiming benefits earlier than planned or seeing your plans disrupted by public policy changes.
“Modeling different Social Security and tax outcomes helps ensure you aren’t overly dependent on assumptions that may not materialize,” Williams said. “Stress testing these scenarios reveals how changes might affect everything from withdrawal strategies, to budgeting and duration of your savings.”
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