In this DC Update, we’re addressing a common question from Missouri state employees nearing retirement during a market downturn: “I’m getting ready to retire and the market is down. What should I do?” When we hear this, we typically ask two key questions: 1. Are you planning to spend all of your retirement savings as soon as you retire? 2. Will you make major investment changes as soon as you leave state employment? If your answer is no to both, the best move is often to stay the course. While past performance isn’t a guarantee, history shows the market has recovered from previous downturns. For example, after the 2008 financial crisis, the S&P 500 regained its pre-crisis levels within four years—and those who stayed invested saw strong long-term growth. If you answered yes to either question, consider a more strategic approach: Can you delay taking withdrawals? Take only what you need? Hold off on shifting investments? Making changes or withdrawing money while the market is down can lock in losses. Retirement isn’t a finish line—it’s a new phase. You don’t have to withdraw your MO Deferred Comp savings right away. Keeping a long-term view helps your money continue to work for you while in retirement. Retiring in a downturn isn’t ideal, but it doesn’t have to derail your future. For help navigating your options, contact a MO Deferred Comp financial education professional for one-on-one help and education. Are there any specific questions you would like for us to answer in an upcoming DC Update? Let us know by emailing modeferredcomp@modeferredcomp.org.
