How tiny shifts in advisor phrasing can improve client outcomes

Investors crave comfort, predictability and a sense of control, particularly as they transition from accumulation to decumulation. Advisors who frame retirement scenarios in a way that takes these needs into account — particularly in volatile markets and an uncertain economy — can strengthen relationships and outcomes. 

My firm recently surveyed 1,504 affluent and high net worth investors aged 50 or older to understand how they are preparing for and managing retirement income. 

Across the following three common retirement planning scenarios, we found that small shifts in advisor phrasing consistently changed how investors felt about identical financial outcomes. 

Communication, it turns out, is a strategy of its own.

Scenario No. 1: Annual cash flow

The survey presented investors with two identical portfolios, each designed to generate 4% annual cash flow in retirement. In the first, the cash flow came from selling appreciated shares; in the second, it came from dividends. Respondents reported significantly higher satisfaction when income came from dividends rather than from selling shares. This aligns with the behavioral construct of mental accounting, in which people view income differently depending on its source. 

This doesn't mean advisors should chase yield or overallocate to dividend stocks to increase a feeling of security in clients. Rather, advisors can reinforce the emotional benefit investors gain from knowing their cash flow is steady and visible by the words they use to frame the strategy.

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Instead of saying, "We'll sell a few shares each quarter to generate your 4% income target," for example, reframing it as, "Your portfolio is designed to generate a steady 4% income stream, much like regular dividends" instills a sense of stability and confidence. 

Scenario No. 2: Monte Carlo simulations

Monte Carlo simulations, which predict a client's chances of success in retirement, have become a staple of retirement income planning. Yet the way an advisor frames the forecasted results can dramatically affect client comfort. 

Traditionally, advisors report a "success rate" — for example, a 90% chance of meeting a spending goal and a 10% chance of failure. The study found that reframing probabilities as spending adjustments significantly increased client comfort. This aligns with self-determination theory: People feel more confident when they believe their actions influence the outcome.

Rather than saying, "You have a 90% chance of success and a 10% chance of failure," consider, "There's a 90% likelihood your plan will meet your goals. In the other 10%, we'd make small spending adjustments." This subtle shift conveys control and adaptability, which are key to adhering to a long-term financial plan. The underlying probabilities did not change, but the language did.

Scenario No. 3: Claiming Social Security benefits

We also tested optimal framing around one of the most consequential decisions in retirement planning: when to claim Social Security. In one version, clients were told that each year of waiting would earn them an additional 8% benefit. In another, claiming benefits early was framed as a loss of 8% per year.

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Though the math was identical, investors were more likely to delay when claiming early was presented as a loss. This reflects prospect theory, which posits that people feel losses roughly twice as strongly as the pleasure of equivalent gains.

For advisors, this reframing is simple but powerful. Instead of saying, "You will gain 8% per year by waiting to claim benefits," try, "You lose about 8% annually if you claim early." The message is the same, but the wording shifts the client's motivation.

All in the phrasing

Here are three reframing takeaways to keep in mind when guiding clients to optimal outcomes. 

Audit your language: Replace binary "success/failure" framing with adaptive terms such as adjustment, flexibility and course correction.

Emphasize peace of mind, not perfection: Clients judge advisors by experience as much as outcomes. Framing strategies around steady progress, confidence and control can be as powerful as performance metrics.

Reinforce autonomy: Involve clients in decisions about spending or income sources. Shared decision-making increases engagement and reduces anxiety during volatility.

The market swings of 2025 reminded investors how fragile confidence in their long-term financial plans can be. More than half of our survey respondents said they followed markets more closely this year, yet the most common action was to do nothing. That restraint often stems from strong advisor relationships, ones built on clear, reassuring communication.

At its core, effective planning is as much about psychology as it is math. Advisors who understand this can not only guide clients toward better outcomes but also help instill greater peace of mind along the way.