At first glance, it doesn't seem to make sense. If two people earn similar savings and investment returns, shouldn't they end up in roughly the same place?

Not necessarily.

When withdrawals are involved, losses early in retirement can have a greater effect than losses that arrive later. Selling investments after a decline leaves fewer shares available to participate if the market recovers.¹

Same savings. Same average return. Different outcomes.

Financial professionals sometimes refer to the five years before and after retirement as the fragile decade.²

You can also think of it as the Retirement Red Zone.

Just like in football, the red zone is where the biggest plays happen. The years surrounding retirement can have an outsized impact on what comes next.

Before retirement, you're still building your savings. After retirement, you begin relying on them.

A market downturn during that transition can make the shift more challenging.

History offers real-world examples of how timing can shape retirement.

Someone who retired in 1995 enjoyed several years of strong market growth before the dot-com crash.

Someone who retired in 2000 faced major market declines almost immediately.

Even with similar savings, the second retiree likely faced more difficult decisions about spending and withdrawals.*

*Hypothetical example for illustrative purposes only. Actual results depend on investment returns, withdrawals, fees, inflation, and other factors.

But you have more control than you might think.

Keeping cash reserves for near-term spending can help reduce the need to sell investments after a downturn.

Flexible withdrawals, a thoughtfully balanced investment mix, and dependable income sources can also help your retirement plan weather market volatility.

Already retired? These same levers may still give your strategy more room to respond.