As the economy continues to shift in unpredictable ways, many Americans are looking for smart, practical steps to recession-proof their retirement savings. A downturn often brings anxiety about market swings and future income, but it can also create opportunities—if you’re prepared.
To help readers make sense of today’s landscape, I spoke with leading financial experts about the most effective strategies for protecting your retirement and positioning yourself for long-term stability.
Here are 10 expert-recommended ways to build a recession-resilient retirement plan.
1. Secure Steady Income With Annuities
Annuities remain one of the most dependable ways to stabilize income in retirement—especially during times of volatility.
“Annuities can provide a steady income stream, which is crucial for retirees seeking financial stability,” said Minji Ro, chief strategy officer at Gainbridge. “They offer a predictable cash flow, which can help manage the uncertainties of market volatility.”
Doug Ornstein, wealth management director at TIAA, noted that annuities can serve as the backbone of a retiree’s guaranteed income. “Annuities can be used to guarantee income for life with guaranteed positive returns,” he said. “Unless you’re extremely well-funded for retirement, you want enough in here so that when annuities are combined with Social Security income, you’re able to replace about two-thirds of your basic living expenses.”
Experts also caution investors to be mindful of fees and to consider direct-to-consumer annuities that remove traditional broker commissions.
“Some of them, especially those offered by companies like Gainbridge, do offer attractive interest rates with zero or little fees. This can be particularly appealing for investors seeking a stable income stream, especially in a low-interest-rate environment,” said John Murillo, chief dealing officer of B2BROKER.
2. Diversify Your Investment Portfolio
Diversification is one of the most time-tested ways to soften the blow of market downturns.
“Having a mix of stocks, bonds, real estate, and other assets reduces the overall risk in your portfolio. If one asset class performs poorly, others may pick up the slack,” said Bill Smith, CEO of W.A. Smith Financial Group.
Ornstein added that global diversification is more important now than ever. “Geographic, company size, company type, and economic sector diversification within equities can help protect your portfolio, especially during inflationary periods,” he said. “Companies with strong fundamentals and healthy balance sheets are better positioned during recessions.”
3. Look for Recession-Proof Opportunities
Recessions often create more opportunities than investors expect—if they’re prepared.
“Recessions create more millionaires than any other time,” said Jaspreet Singh, financial expert and Minority Mindset founder. “When markets fell by 20% in 2022, it was a great buying opportunity. When markets fell by 40% in 2020, it was a great buying opportunity. When the housing market crashed after 2008, it was a great buying opportunity. Every asset—stocks, real estate, cryptocurrency, gold—goes through cycles.”
Singh emphasized that financial education is the foundation of opportunity. “I’m not in the business of trying to predict what’s coming next. Instead, I want to be able to find the opportunity, wherever that is. And the only way to do that is by investing in your own financial education.”
Smith recommends building a retirement strategy that separates guaranteed income from long-term growth. “The best way to recession-proof your retirement is by having a clear plan that separates your retirement income needs from your long-term growth goals,” he said.
4. Invest in Inflation-Protected Bonds
Inflation can quietly reduce the value of your retirement dollars, making inflation-protected assets essential.
“Inflation can be one of the most damaging forces on your portfolio. Investing in TIPS allows you to safeguard against this risk,” said Laura Scott, an investment advisor.
5. Consider Dividend-Paying Stocks
Dividend-paying companies—especially those with decades-long track records—tend to stay resilient in downturns.
“Dividend stocks are a great way to generate income in a recession. Focus on companies with a strong track record of dividend payments, even during economic downturns,” said John Miller, senior portfolio manager at Miller Investments.
6. Strengthen Your Emergency Fund
Having accessible cash remains one of the simplest and most powerful forms of protection.
“Before you think about your investments, start with the basics that protect [the] future you: a solid emergency fund,” said Tori Dunlap, founder of Her First 100K. “If you don’t yet have three to six months of your expenses saved in a high-yield savings account, start there.”
George Kamel of Ramsey Solutions echoed the importance of fundamentals. “Recession or not, the best way to protect yourself financially is to live on less than you make, get out of debt (and stay out), and save 3-6 months of expenses for emergencies,” he said.
He added a reminder for long-term investors: “The stock market will go up, and it will go down. But the only ones who get hurt on the rollercoaster are the ones who jump off early.”
7. Minimize Debt
High-interest debt works against you, especially when the economy slows.
“Clearing out high-interest debt, such as credit cards, is critical before retirement. You don’t want to be saddled with additional expenses when you’re relying on fixed income,” said Steven Taylor of Taylor & Associates.
Kamel added that eliminating unnecessary spending widens your financial cushion. “The less debt you have, the less stress you carry when times get tough—because debt is a thief, and in a recession, it steals your options,” he said.
8. Review Your Asset Allocation
As retirement approaches, your asset mix should evolve.
“Asset allocation isn’t a one-time decision. It’s important to review it regularly to ensure it aligns with your current financial situation and risk tolerance,” said Maria Ruiz, financial planner at Ruiz & Co.
9. Focus on Low-Cost Index Funds
Low-cost index funds remain one of the simplest ways to stay invested through volatility.
“Index funds are a great option during uncertain times. They provide broad market exposure at a low cost, allowing you to ride out market volatility,” said David Wong, chief investment officer at Wong Wealth Management.
10. Consider Real Estate Investments
Real estate continues to be one of the strongest hedges against inflation, especially when it generates steady cash flow.
“Cash-flowing real estate is number one always,” said Grant Cardone. “People don’t stop renting in a recession—they stop buying homes.”
He added that demand for essential real estate remains strong even during downturns. “Storage, workforce housing, service-based commercial units—things people need in any economy,” he said. “Recession-proof means people still pay for it even when they’re scared. If you have to pray for it to go up, it’s not an investment—it’s a gamble.”
Position Yourself for Strength in Any Economy
By applying these expert-backed strategies, retirees can build portfolios that stay resilient through downturns while remaining flexible enough to capture new opportunities. The most enduring retirement plans combine protection, smart risk-taking, and ongoing financial education.
Or, as Singh put it, “The only way to find the opportunity is by investing in your own financial education.”