Is Your Retirement Plan Crisis-Proof? Most Aren’t. Here’s How to Check
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When we talk about retirement, most people imagine traveling, spending time with family, or finally picking up long-delayed hobbies. But in reality, many retirement plans are vulnerable to unexpected shocks—market crashes, rising healthcare costs, inflation, or sudden tax law changes.
The question is no longer if you need a retirement plan, but if your plan is truly crisis-proof.
At Freedom Wealth, we help individuals and families in San Antonio and across the U.S. build retirement strategies that hold up—even when the world doesn’t go as planned.
The Biggest Threats to Your Retirement Plan
1. Market Volatility
Recent years have shown us how quickly the market can swing. Without a strategy for downturns, retirees relying heavily on investments may face reduced income or be forced to sell assets at a loss.
2. Inflation and Cost of Living
Inflation eats away at your purchasing power. According to the U.S. Bureau of Labor Statistics, inflation averaged around 3% per year, but recent spikes have exceeded 7%, making fixed retirement incomes less effective.
3. Healthcare and Long-Term Care Costs
The average couple retiring at 65 may need over $315,000 for healthcare expenses throughout retirement (source: Fidelity, 2024). Without proper insurance or planning, these costs can derail your retirement budget.
4. Changes in Tax Policy
Tax brackets and retirement account rules are always evolving. For example, required minimum distributions (RMDs) can create unexpected taxable events that reduce net retirement income.
How to Check If Your Retirement Plan Can Withstand a Crisis
Diversify Income Streams
Depending solely on Social Security or a single pension can be risky. Consider integrating:
Roth IRAs or Roth 401(k)s (tax-free withdrawals later)
Rental or passive income
Part-time consulting work
Dividend-producing investments
Learn more about Roth strategies →
Stress-Test Your Plan
Ask your advisor to run simulations that include:
Severe market downturns
High inflation scenarios
Unexpected medical expenses
Tax rate increases
This approach helps reveal vulnerabilities before they become real problems.
Plan for Longevity
Many underestimate how long they’ll live. According to the Social Security Administration, a 65-year-old today has a 50% chance of living past 85. Your plan should consider the possibility of living 25-30 years in retirement.
Optimize Tax Efficiency
Taxes can be one of your biggest expenses in retirement. Strategies to consider:
Roth conversions during low-income years
Strategic withdrawal sequencing from taxable, tax-deferred, and tax-free accounts
Qualified charitable distributions (QCDs) if charitably inclined
Include Healthcare and Long-Term Care Planning
Consider long-term care insurance or hybrid policies that combine life and long-term care benefits. Review Medicare options carefully and prepare for out-of-pocket expenses.
Why Most Retirement Plans Fall Short
Many plans focus heavily on accumulation but ignore distribution. It’s not just about how much you save—it’s how you draw those funds while minimizing taxes and market risks.
Another common mistake? Overestimating investment returns and underestimating spending, especially on healthcare and inflation.
Local Perspective: Retirement Planning in San Antonio
San Antonio’s cost of living is lower than many large cities, but property taxes and rising healthcare costs still impact retirees. Additionally, Texas does not have a state income tax, but retirees must still plan carefully for federal taxes and Medicare premiums.
Whether you’re in San Antonio or planning to retire elsewhere, a crisis-proof plan requires tailored advice that fits your lifestyle and future goals.
How Freedom Wealth Can Help
At Freedom Wealth, we work closely with you to build retirement strategies designed for real life—not just rosy projections. Our approach includes:
Comprehensive retirement income planning
Customized investment strategies
Tax-efficient withdrawal planning
Legacy and estate integration
Healthcare and insurance reviews
We emphasize clarity and confidence, so you can focus on enjoying your retirement, not worrying about the next crisis.
Questions to Ask Yourself Right Now
How would my retirement income change if the market dropped 30% next year?
Do I have a plan for unexpected healthcare costs?
Am I using tax strategies to minimize my lifetime tax burden?
How long can my current plan support my lifestyle if inflation remains high?
If you’re unsure about the answers, it’s time to review your plan.
Conclusion: Build a Retirement That Can Weather Any Storm
A crisis-proof retirement plan isn’t about eliminating risk—it’s about preparing for it. With the right strategies, you can protect your lifestyle, legacy, and peace of mind.
Whether you’re years away from retirement or already there, it’s never too late to strengthen your plan.
📞 Schedule a free consultation with our San Antonio-based advisors today and make sure your retirement is ready for anything.