Too much risk in retirement can be detrimental for several reasons:

1. Income Stability: Retirees rely on their savings and investments to generate income during retirement. If investments are overly risky, they may experience significant fluctuations in income due to market volatility. This can lead to uncertainty and stress about meeting day-to-day expenses.
2. Loss of Capital: Riskier investments have the potential for higher returns, but they also carry a higher risk of losses. In retirement, there's less time to recover from market downturns or financial setbacks. Losses early in retirement can significantly reduce the overall value of your portfolio, making it harder to maintain a sustainable income throughout your retirement years.
3. Sequence of Returns Risk: This risk refers to the order in which investment returns occur. Poor market performance early in retirement can deplete assets faster than expected, as retirees may need to sell investments at lower prices to meet income needs. This can exacerbate the impact of market downturns on long-term financial security.
4. Longevity Risk: With increasing life expectancy, retirees need their savings to last longer. Too much risk can jeopardize the ability to sustain income over a longer retirement period, especially if investments underperform or if withdrawals exceed sustainable levels.
5. Psychological Impact: Retirees may experience increased stress and anxiety when their financial situation becomes uncertain due to risky investments. This can affect overall well-being and quality of life during retirement.
6. Inflation Risk: Riskier investments may not provide adequate protection against inflation. Inflation erodes the purchasing power of money over time, and retirees may find that their income does not keep pace with rising living costs.
7. Lack of Flexibility: Riskier investments often require a longer investment horizon to ride out market fluctuations. In retirement, retirees may need liquidity and flexibility to cover unexpected expenses or changes in financial needs, which riskier investments may not provide.

Overall, while some level of risk can be appropriate to achieve growth and combat inflation in retirement, it's essential to strike a balance between risk and stability. This often involves diversifying investments, considering guaranteed income sources, and having a well-thought-out withdrawal strategy to manage risks effectively and ensure financial security throughout retirement.