Economic Downturns Dash Retirement Dreams
Economic downturns affect pockets of the population disproportionally. Because of their nature, 401(k) plans tie employees to the health of the stork and housing market. That’s why we’re in a particularly difficult patch, retirement savings also suffer.Â
We’ve seen this happen twice in recent years. Both in 2000 and 2008, market-based retirement plans have been crippled. They typically also take years to recover so what you thought of as a safety net could quickly turn into a financial disaster when you’re most vulnerable.Â
