Retiree Diversification Gap: 86% of High-Risk Retirees Miss Key Benchmark

Retirees in a 2025 Jackson National Life study show a critical diversification gap: 86% of high-risk retirees fail to meet a four-of-five-asset benchmark, leaving them overexposed to cash and bonds and underprepared for inflation and longevity risk. The survey of over 1,000 investors found 22% classified as high-risk, with 49% holding more than 45% of assets in cash or bonds—well above the 20% recommended. Excessive allocation to these assets can erode purchasing power and increase the risk of outliving savings. Advisors recommend three to five years of expenses in low-volatility assets, with dynamic spending and rebalancing to adjust to market conditions. Diversification should span small- and mid-cap U.S., developed international, and emerging markets to manage sequence-of-returns risk. Proper diversification across asset classes and income-growth strategies is key to long-term retirement security.