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Key Takeaways
- According to a survey released by Voya last week, more than a third said that tariffs or economic uncertainty had a significant impact on their retirement savings.
- Nearly 40% said they also delayed or strongly consider delaying the date of their planned retirement.
- Around one-third of respondents also reported increasing or decreasing their contributions into their employee-sponsored pension plan, making changes in their portfolio, or strongly evaluating doing so.
If you've looked at your retirement savings in dismay over the past month, you're not alone, according to a new survey.
A survey released by the financial services firm Voya last week showed that more than one-third of respondents felt that tariffs and trade policy uncertainties had a serious impact on their retirement savings. Nearly 40% said they also deferred their planned retirement date or strongly considered delaying it during the recent turmoil.
The survey results show how retirees are reacting to the recent volatility in the markets and economy. Traders are hopeful that trade deals will be reached soon, and stocks have recovered much of their initial losses after Trump announced steep tariffs on trading partners. Financial markets are still concerned about the impact of import taxes on the economy.
Many retirement savers make changes to their investments. According to the survey, nearly 30% of respondents have made changes to their employee sponsored retirement plan or are strongly contemplating doing so. Nearly 20% of respondents said they had moved money from traditional savings accounts to investments, and a similar number said they were strongly mulling it over.
What Should you do in the event of certainty?
In times of uncertainty, it's important to have a plan in place for your retirement, said Kerry Sette, vice president and head of consumer insights and research at Voya.
“Market volatility, policy changes, regulatory shifts, and fluctuating investor sentiment can create uncertainty, but maintaining a steady retirement savings and investment strategy is key," Sette told Investopedia.
Financial advisors say that depending on your age, the strategy you use during volatile times could be different. Advisors say that those who are closer towards retirement could consider making changes such as Roth IRA conversion or rebalancing 401(k)s. Those farther from retirement should be in a position to regain their savings with time.
Either way, advisors said that retirement savers shouldn't drastically change their savings strategies during periods of uncertainty.
