Government shutdown: What it means for your retirement
With government shutdowns becoming more frequent and lasting longer — from one day in the 1980s to 35 days in 2018–2019 — it’s important to understand how these events could impact your retirement stability.
The Good News
Historical data shows shutdowns rarely threaten retirement stability:
- Social Security, Medicare and federal pensions continue uninterrupted.
- The S&P 500 has risen 55% of the time during shutdowns.
- Markets were higher 86% of the time one year after shutdowns ended.
- Private-sector employment remains unaffected.
To help retirees and those nearing retirement better understand how a shutdown may impact them, click HERE to read “Government Shutdowns: Preserving Your Retirement.”
While past shutdowns have had minimal impact on retirees, future outcomes remain uncertain. Market volatility during these events could exceed your comfort level, especially if you’re within five years of retirement.
What Can You Do Now?
With shutdowns becoming a recurring concern, consider taking these proactive steps:
- Review your risk tolerance to help ensure your portfolio aligns with your comfort level
- Build a buffer against market losses during your critical retirement window
- Help ensure your plan prepares you for various scenarios
Let’s Talk
If you’re wondering how potential shutdowns might affect your retirement strategy, let’s have a conversation. At Blue Financial, we can help you review your plan and help ensure you’re positioned for confidence through any market conditions.
Click this link to schedule your complimentary visit today.