Saving for retirement is just as important during tough times as it is in good times. And making consistent contributions to a retirement savings account is the key to achieving the retirement lifestyle you deserve, according to retirement experts from T. Rowe Price.
The average 401(k) saver will experience several market downturns throughout their working years and retirement. Times of personal crisis or financial issues can also make saving for retirement a struggle. It’s easy to say, “I’ll push the pause button on my retirement savings just for now. I’ll start saving again next year when the economy calms down.” The problem? Once you stop, it’s hard to start again.
The solution? Consistency. Experts recommend you resist the temptation to stop contributing when markets decline. In fact, market downturns can be opportunities to take advantage of lower prices. When the market rebounds, you may be further ahead than ever. Plus, once you stop saving, the harder it will be to start back up again.
Here are a few tips to give you the confidence to continue contributing to your 401(k) and other savings:
- Focus on the future. While markets constantly change, your retirement goals and how you plan to get there shouldn’t change.
- Control what you can control. Don’t stress about the rest.
- Assess your risk tolerance every few years. Intermountain’s pre-built diversified portfolios make it easy to rebalance your portfolio as your circumstances change.
To start, restart, or increase your retirement savings contributions, login to the T. Rowe Price website anytime.
Learn to improve your financial wellbeing at an upcoming webinar
T. Rowe Price is hosting several financial health webinars for caregivers. The next course, Creating and Balancing a Budget, will be Wednesday, July 29, at 9 a.m. and 3:30 p.m. and will provide a framework for your finances and help you feel confident about future spending. Learn more and register.