The stock market’s recent downturn has left many retirees feeling anxious, but experts say it’s essential not to panic. “Don’t make an emotional or knee-jerk reaction,” says Nick Bour, founder and CEO of Inspire Wealth in Brighton, Michigan. “During Covid, stocks went down really fast, but they also came back really fast.”
For those nearing retirement, it’s crucial to stand still during market turmoil. Selling investments in a downturn can lead to “sequence risk,” depleting retirement savings faster than anticipated.
If you need cash, consider refinancing your mortgage or using a home equity line of credit (HELOC). These options can provide liquidity without breaking the bank.
Despite the volatility, many Americans have chosen to stay invested and even increase their investments. Companies tracking 401(k) and individual trading activity show significant gains in deposits during market downturns.
Retirees like Mary Johnson, who has seen a $6,000 reduction in income for 2026 due to the stock market’s recent freefall, must weigh their options carefully. “The current situation is not only chaotic, it’s crazy,” says ING Economist Carsten Brzeski.
By staying informed, avoiding emotional decisions, and exploring available liquidity options, retirees can navigate this challenging market environment with confidence.
Source: https://eu.usatoday.com/story/money/personalfinance/2025/04/10/newly-nearly-retired-stock-market-tariffs/83017256007