High-net-worth investors are vigilant in the face of uncertainty, but most understand that staying the course is the best strategy for achieving long-term goals, according to survey results that Janus Henderson reported Thursday.
The survey found that clients are receiving valuable guidance from their financial advisors; a majority have received a retirement income plan.
Marketing research firm 8 Acre Perspective conducted the survey in June among 1,504 U.S. investors 50 and older with a minimum of $250,000 in investable assets, 44% of whom held $1 million or more.
About half of investors with an advisor reported that they had communicated more with their advisor during the market volatility earlier this year, and advisors who were proactive during that period saw significantly higher levels of client loyalty.
Fifty percent of respondents reported that they checked their accounts and investments more often during the early 2025 market swings, and 49% followed market news more closely. Although their vigilance increased during that period, 36% said they took no action, the most often-cited actions taken.
Seven in 10 expressed concerns about their ability to generate retirement income because of volatility; this was especially pronounced among investors in their 50s, according to the survey.
Comfort First
Investors’ preferred retirement cash flow strategies reveal a comfort-first mindset, the survey found, but also a potential need for deeper diversification conversations with their advisors.
Fifty-seven percent of retired respondents hold a year or more of expenses in cash, while 64% of respondents added or said they plan to add to their cash reserves to ensure adequate cash flow in retirement.
Investors prefer dividend-paying stocks as the vehicle of choice for generating income, according to the survey findings, with 39% reporting that they have already invested in dividend payers and 21% planning to do so.
Eighty-nine percent of respondents work with multiple firms, and 67% of those who do said they see no need to reduce the number of financial institutions they use.
Janus Henderson said that the advantage for investors of ensuring retirement cash flow is the peace of mind of knowing that, regardless of the market’s performance, the next several months of cash flow is set aside.
It said that investors’ reluctance to consolidate their financial accounts in retirement is also likely tied to the comfort factor. However, retirees may find it more challenging to adhere to their retirement income plan if there are cash inflows and outflows to and from multiple providers.
Advisors can provide value in this area, it said, by helping clients look across all their accounts for opportunities to strategically consolidate.
Reframing Discussions
Small changes in how information is presented can strongly influence client perceptions and decision making, according to the survey. Researchers randomly showed one of two versions of a question covering three topics, each with slightly different wording to capture potential differences in investor perceptions on retirement income planning.
The results provide insight into how advisors can reframe their client conversations to encourage desired behaviors.
Investors preferred a dividend-based income approach whereby they retain all their shares at a lower price versus one that relies on selling stock shares that maintain the same price.
Investors were more comfortable when researchers framed Monte Carlo results in terms of spending adjustments rather than in terms of their chances of “success” or “failure.”
And investors were more likely to recommend delaying taking Social Security when researchers framed this as a loss versus a gain.
Janus Henderson noted that the success/failure framing that advisors commonly use when they present a Monte Carlo analysis may leave clients feeling they have little control over their future. That in turn may make them less inclined to adopt habits and behaviors that can help them make progress toward their goals.
This suggests that softer framing — particularly focusing on future spending adjustments rather than the odds of failure — may be a more effective way to positively influence investor behaviors. Discussions around when to take Social Security benefits can be similarly reframed, making clients more likely to resist the temptation to claim benefits sooner.
The scenario results also underscored investors’ preference for dividend-paying stocks because of the comfort factor. Investors were more satisfied receiving a dividend payment compared to generating a capital gain, even if the amounts were identical.
Janus Henderson said advisors should consider the non-financial benefits of dividend-paying stocks in client portfolios — such as investor peace of mind and comfort — and reframe their discussions accordingly.
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