Baby boomers’ hopes of retiring comfortably could be at risk if stocks keep falling. Older Americans could be forced to delay retirement, resume working, or cut back on spending. Retirement gurus shared a range of strategies to preserve their nest eggs. The benchmark S&P 500 index dropped 10% between February 19 and March 13 — a seven-month low — fueled by fears that the Trump administration’s policies could tip the economy into recession. It’s still in the red for 2025. The sell-off has pinched older Americans’ portfolios, shrinking their nest eggs and stoking worries about affording the retirement they imagined. Most boomers are in their 60s and 70s, getting ready to exit the workforce or already in early retirement. They own stocks worth nearly $20 trillion — almost half the US market — between their direct holdings and 401(k)s. If their portfolios keep declining while they’re withdrawing money to cover living expenses, they won’t recover fully even if the market rebounds — a danger known as “sequence of return risk.” Tim Schmidt, the founder and CEO of Gold IRA Custodians, warned that if these portfolio losses continue, we could be looking at a retirement crisis. Millions might have to delay retirement by three to five years, creating a “workforce bottleneck” that blocks younger employees from advancing. Dan Doonan, the executive director of the National Institute on Retirement Security, said widespread delays in retirement could make it harder for businesses to control costs. The whole economy could suffer if retirees cut back when consumer spending is already under pressure. Markets could also be hit if more people are selling stocks to cover living costs. Prepare for trouble by maintaining a long-term view, rebalancing portfolios ahead of retirement to include more bonds as a “buffer” against volatility, automating contributions, and looking to cut expenses or delay large purchases in a down market. — news from Business Insider
