Monday, March 16, 2020

As COVID-19 continues to create unease in the financial markets, you might be wondering how this market volatility will continue to impact your retirement account.

  • What's going on in the financial markets and why is it affecting my retirement savings? It can be hard to comprehend why a disease should affect your retirement savings. Put simply—as is often the case with major world crises or events—this virus has created a ripple effect. As communities and governments work to prevent COVID-19 from spreading, businesses and industries are being impacted by things such as cancelled events and fewer people traveling, eating out, or shopping. As people around the world get sick and take time off work to recover, distribution and supply chains are disrupted, too. Combine all this with current geopolitical events like the oil price war between Russia and Saudi Arabia and you can expect some panic in the financial markets, which will impact your retirement account investments. When the value of those investments fluctuates, so does your account balance.
  • Are my retirement savings at risk? Every time you invest and put your money in the financial markets, you take on risk. You do this because over the long term, investing in the financial markets has been shown to outpace inflation—even when you account for past market downturns, such as the 2008 crash. But, while everyone who invests takes on some level of risk, diversification helps us manage the amount of risk. 
  • What should I do? Remember that pulling your money out of the market can actually lock in losses that you may not recoup unless your money is invested when the market starts to rebound. If you find yourself itching to take action, we recommend that you consider taking advantage of the investment education tools provided by Prudential Retirement and investment advice services provided by Morningstar® Retirement Manager. Log in to for additional information.

RSS News Feed
Top News

News Archive

To see previous articles please click here .