‘Bond Ladder’ Strategy Offers Retirement Stability amid Market Volatility, Advisors Say

As tariff-related uncertainty fuels stock market swings, financial experts are recommending a time-tested strategy to help protect retirees' savings: the bond ladder.

A bond ladder — a portfolio of bonds with staggered maturity dates — can offer stability and peace of mind to those nearing or entering retirement, said Alex Caswell, certified financial planner at Wealth Script Advisors. “It provides emotional comfort and stability for clients,” Caswell noted.

Elderly man counting money | Source: Pexels

The approach involves purchasing bonds that mature at regular intervals — every six months or one year, for example — over a span of up to five years. As each bond matures, retirees can use the proceeds for expenses or reinvest in new, longer-term bonds.

The method is particularly useful during periods of rising interest rates or market volatility. It also helps retirees manage the “sequence of returns” risk — the danger that poor market performance early in retirement could deplete a portfolio faster than expected. According to a 2024 report by Fidelity Investments, early negative returns can severely limit long-term growth by reducing the impact of compounding.

Caswell emphasized the strategy's flexibility: “It provides more transparency and control of when you’re taking money out of that part of your portfolio.”

Elderly man holding money in front of a laptop | Source: Pexels

Investors can also apply the ladder concept to certificates of deposit or consider Treasury inflation-protected securities (TIPS), which adjust for inflation. Amy Arnott, a portfolio strategist at Morningstar Research Services, said a TIPS ladder can help mitigate the erosion of purchasing power.

“Inflation and loss of purchasing power can be a risk with bonds, which is why a TIPS ladder can be attractive,” Arnott explained. With market turbulence expected to continue, advisors say bond ladders can offer retirees a steady financial foothold.