Worried falling markets might ruin your retirement? Here’s what to do |
Worried falling markets might ruin your retirement? Here’s what to do
March 14, 2026 — 4:01am
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We’re back in the stockmarket washing machine. For many investors that’s just part of the ride. Markets go up, markets go down, and over time they tend to recover.
But for people approaching retirement who might never have thought of themselves as investors, a market shock just before they leap, or early in retirement, can also become a personal financial shock. Especially if they haven’t thought through how they will fund their short and medium-term spending before markets tumble.
And then they reach that moment, maybe 10 or 12 days into a war, an economic crisis or a market meltdown, when it suddenly looks like this might not be a short-lived wobble.
So they start asking the big questions: Should they sell and sit on the sidelines? Should they move everything to more conservative investments? If I don’t already have a financial adviser, who do I ask? Friends? The internet? The call centre at my super fund?
It’s a tough reality for many this week. So let’s step back and talk sensibly about what’s actually going on, and what your options are.
One of the most important ideas to understand if you’re approaching retirement is something called sequencing risk. It sounds technical, but the concept is actually basic. Sequencing risk is the danger that a major market downturn happens right when you start drawing income from your savings.
If market wobbles continue for a while and your savings stay depressed, it might be wise to consider keeping working for another year or two.
During your working life, market falls are uncomfortable but not necessarily harmful.........