Podcast Summary: So Money with Farnoosh Torabi

Episode 1931: The New Rules of Retirement Planning. What Actually Matters Today
Release Date: January 14, 2026
Guests: Christine Benz (Director of Personal Finance and Retirement Planning, Morningstar)
Host: Farnoosh Torabi

Overview

This episode explores the evolving landscape of retirement planning in 2026 with renowned financial expert Christine Benz. The conversation addresses what’s changed in the past few years—like long market runs, persistent inflation, longer lifespans, and concerns about Social Security and healthcare costs—and identifies the new rules and best practices for ensuring a secure, meaningful, and flexible retirement. Christine brings both professional insights from her research at Morningstar and personal experience as a caregiver for aging parents.

Key Discussion Points and Insights

1. The New Landscape of Retirement Planning ([03:35]–[06:21])

• Market Run Implications: The extended bull run in both U.S. and non-U.S. stocks offers optimism for those approaching retirement, but Christine emphasizes now is the time for pre-retirees to increase safer assets like cash and bonds.

  • Quote: “As you approach your 50s, it makes sense to start de-risking a portion of your portfolio…you want to have some safer assets to draw upon to prevent yourself from having to get into stocks after they've declined.” ([06:21], Christine Benz)

• Inflation Protection: Especially critical for those nearing or in retirement. Older adults drawing on their portfolios need explicit inflation-protected investments.

  • Tools mentioned: I Bonds and Treasury Inflation-Protected Securities (TIPS). ([08:27]–[10:06])

2. Safe Withdrawal Rates & Dynamic Spending ([10:06]–[12:18])

• Christine's team at Morningstar continues to advocate for a ~4% initial withdrawal rate (currently 3.9%), but urges retirees to stay flexible based on yearly portfolio performance.
  • Quote: “Most 30-year retirement time horizons aren't a worst-case scenario…Be prepared to vary your withdrawals based on what has gone on in your portfolio and also be prepared to take more as you age.” ([10:30], Christine Benz)

3. Importance of Professional Guidance ([12:18]–[14:35])

• Even for savvy ‘DIY’ investors, retirement involves complexities beyond investment management, such as tax planning and Social Security filing decisions. Christine suggests periodic, not necessarily ongoing, hourly engagement with planners for second opinions and stress-testing assumptions.

4. Redefining Retirement: Visualization and Emotional Prep ([14:35]–[17:54])

• Retirement is increasingly less about “extended vacationing” and more about finding new purpose, structure, and social connection.
  • Quote: “…you need something to relax from…you need that balance that comes from actually accomplishing stuff. So maybe it's getting more involved in your community, maybe it's working in some fashion, but at a job that you think is fun…” ([15:25], Christine Benz)
• Social connection, activity, and health habits are all crucial for retirement wellbeing, particularly for men whose networks are forged at work.

5. Healthcare, Longevity, and Long-Term Care ([21:39]–[27:19])

• Long-Term Care Misconceptions: Many falsely believe Medicare covers custodial long-term care. It does not.
  • Quote: “The biggest misperception is that this is something that’s part of the Medicare system. It is not…People need to make a plan for confronting that level of care.” ([22:40], Christine Benz)
• Funding Strategies:
  • The “self-funders”: Those with ample resources may need to earmark $500,000+ for potential long-term care costs.
  • The “government-reliant”: Those with few assets will depend on Medicaid after spending down their savings.
  • The “in-betweeners”: Middle savers might consider long-term care insurance, but Christine warns of qualification and payout issues.
• Personal Connection: Christine's guidance comes from her parents' experiences of high long-term care costs and the burden of self-funding.

6. Caregiving Burdens on Adult Children ([27:19]–[30:36])

• The emotional and financial fallout of caregiving often falls on adult daughters, who may be forced to curtail their own retirement savings and career progress.

• Jean Chatzky's advice: “Even if it takes your whole salary to pay those caregivers, stay in the workforce and do that because it will preserve your ability to keep working when your parents are no longer around.” ([28:35], Christine Benz paraphrasing Jean Chatzky)

• Cultural expectations often heighten these roles, especially in some immigrant families.

7. Emotional Transition—Getting ‘Retirement Ready’ ([31:07]–[33:06])

• Start planning for the non-financial side early—demo days, test new routines, and communicate intentions with friends, family, and community.
  • Quote: “You still want to have structure in your life…start really thinking about what your days will be like in retirement.” ([31:37], Christine Benz)
• “Covid taught us that a lot of unstructured time, not good…” ([33:06], Farnoosh Torabi)

8. The “Choose Your Own Adventure” Retirement Era ([33:06]–[36:24])

• The shift from pensions (“everyone was on the bus”) to 401(k)s (“we’re all in our own cars”) puts more responsibility—and risk—on individuals, with highly variable results.
  • “Some 401 overachievers here and then you’ve got people who have really struggled to amass significant savings…” ([36:24], Christine Benz)
• Frequent job changes and ‘leakage’ from 401(k)s make consistent saving harder for younger generations.

9. Optimizing 401(k)s and Alternative Options ([36:24]–[41:04])

• Target Date Funds are described as the “dynamite innovation” for making default investment options simpler and more intuitive for employees.
• Cost vigilance: Look for plans with investment options under 0.5% in fees; small employers often have more expensive offerings.
• The big advantage of a 401(k): Automatic, seamless contributions from paychecks.
  • “I have a hard time telling people to not take advantage of that…system that we get with 401ks.” ([40:06], Christine Benz)

10. Special Considerations for Women ([41:04]–[44:38])

• Women face distinct challenges: wage gap, caregiving gaps, longer lifespans, and a greater likelihood of living alone in old age.

• Long-Term Care Planning: Women are advised to prioritize securing long-term care insurance/plans, as they are likely to outlive spouses and lack a caregiver.

• Investment Strategy: Women should not be overly conservative; more years in retirement means a need for equity growth, especially during career peak earnings years. Save aggressively early for future flexibility.

  “If a couple has to make a decision about who to buy long term care insurance for, make it the woman because the data suggests that she will outlive her male partner.” ([42:00], Christine Benz)

11. Brokerage Accounts for Midlife Flexibility ([44:38]–[47:44])

• Farnoosh shares that opening a taxable brokerage account (outside traditional retirement accounts) gave her midlife flexibility for caregiving, health, or career slowdowns, which Christine enthusiastically supports.
  • “…such fabulous advice…having that flexibility in a brokerage account…” ([46:34], Christine Benz)
  • “We need to not just have it be this slog of work and then retirement one day, think about leaning in and out throughout our careers.” ([46:34], Christine Benz, referencing Laura Carstensen)

12. Social Security’s Future ([47:44]–[51:10])

• While benefit cuts or eligibility changes may impact younger savers, Christine doubts any near-retirees (mid-50s plus) will see major disruptions.
• She expects potential fixes like raising tax thresholds or full retirement age.
  • “For people…in your mid-50s and beyond, you’re probably safe in terms of your promised benefits. The younger age cohorts, I would say, yeah, probably haircut your promised benefit a little bit just to address what could be some changes in the system coming down the pike.” ([48:53], Christine Benz)

Notable Quotes & Memorable Moments

• On flexibility over perfection in retirement:

  “Flexibility, not perfection, is the real secret to retiring well.” ([04:18], Farnoosh Torabi paraphrasing Christine Benz)

• On the importance of social connection:

  “Men need to be thoughtful about where they will go for putting themselves in connection with other people…” ([15:25], Christine Benz)

• On the reality of self-funding long-term care:

  “It cost an arm and a leg…there was a time there where my dad had Alzheimer’s… and it was a small fortune at the end of their lives.” ([22:40], Christine Benz)

• On deliberate career continuity for caregivers:

  “It can be really difficult to re engage with the workforce if you’ve been out of it for a couple of years…if your plan is to continue working after this caregiving stint is done, it’s best to try to have some continuity…” ([28:35], Christine Benz)

Timestamps for Important Segments

• Retirement Planning in 2026: What’s New? — [06:21]
• Withdrawal Rate and Portfolio Drawdown Strategy — [10:06]
• Value of Professional Guidance in Retirement Planning — [12:18]
• Redefining “Retirement”: Planning for Purpose & Fulfillment — [15:25]
• The Realities & Costs of Long-Term Care — [22:40]
• Caregiving Dilemmas for Adult Children — [27:19]
• Emotionally Preparing for the Transition to Retirement — [31:07]
• The “Choose Your Own Adventure” 401(k) Era — [33:06]
• 401(k) vs. IRA: Simplicity, Fees, and Target Date Funds — [37:01]
• Special Planning for Women — [41:04]
• Brokerage Accounts: Midlife Flexibility — [44:38]
• The Future of Social Security — [47:44]

Takeaways

• Start de-risking portfolios and building in inflation protection as retirement nears.
• Safe withdrawal rates are still around 4%, but retirees should be agile and update yearly.
• Long-term care needs careful, early planning—Medicare won’t cover custodial care, and long-term care insurance is tricky but potentially necessary for some.
• Women and adult children face particular financial vulnerabilities due to caregiving—plan proactively.
• Consider automating retirement contributions, and use target date funds or other default options if investment choices overwhelm you.
• Midlife ‘rainy day’ brokerage accounts provide essential flexibility.
• Social Security fixes are likely but expect changes mainly for younger earners.

Tone and Style

Christine Benz brings a deeply practical, compassionate, and clear-eyed approach. Farnoosh is warm, candid, and reality-based, weaving in relatable anecdotes and actionable strategies throughout.

For more resources:

• Christine Benz at Morningstar ([51:35])
• Book: “How to Retire: 20 Lessons for a Happy, Successful and Wealthy Retirement”
• Check show notes for links