Survival Tips for Retiring When Stocks Sink and Inflation Is High

For anyone who’s retired or nearing retirement, sinking stocks, rising inflation and the prospect of a recession can be a nightmare economic brew.

There are, however, a number of ways savers can try to boost income and work to protect nest eggs to ensure they last as long as possible. It rarely pays to make panic moves in a portfolio, so it’s a smart idea to explore your options before you’re forced to act.

Boost Cash Reserves

Financial planner Jon Ulin, of Ulin Wealth, sees many clients taking precautionary measures now, such as boosting cash reserves to cover at least 12 months of income, cutting back on household expenses and pushing off large purchases.

The bear market in stocks has Rebecca Bigler, who retired in 2018 at age 55, postponing her plans to buy a home in Minnesota. Assembling a down payment would mean the former college professor at the University of Texas at Austin would have to liquidate some stocks in her 401(k) — not an attractive proposition when her portfolio is shrinking.

“I’ll rent for a while and wait on the market until it makes some recovery,” she said.