How to Shield Your Retirement From Market Meltdowns

If you plan well, you can weather even the worst storms and retire without stress. Shutterstock

Based on a nationwide survey of working-age Americans, 79 percent believe the country faces a retirement savings crisis, up from 67 percent in 2020. Additionally, it is estimated that more than half of Americans (55 percent) are worried that they will not be able to retire comfortably.

Now, just imagine retiring right before the market tanks. Suddenly, you’re not so comfortable with your nest egg. The thought of that can be horrifying. However, you shouldn’t let that deter you. After all, no matter what the market throws your way, if you plan well, you can weather even the worst storms and retire without stress.

Weathering Market Storms: Protecting Your Retirement

Investing is always risky, but a significant market downturn near or during retirement can be particularly challenging. The reason for this is what is known as a “sequence of returns risk.” Retirees may need to sell assets at lower prices when making withdrawals from their investments. Even if the market ultimately rebounds, you could lose significant savings and find it harder to recover.