10-04-2025
Maryland workers anxious over the stock markets impact on their retirement plans
The stock market rollercoaster is creating uncertainty and anxiety when it comes to people and their money.
A Maryland economist advises those with 401 (k) retirement plans and investments to wait this out.
"Looking at a lot of the past, when the market retreated 5% plus, in the following year, you have greater than 10%, in some cases 20% returns, so the worst thing you can do now is pull out of fear and miss out on those gains," said Loyola University Finance Professor Jason Cherubini.
The stock markets soared 7% on Wednesday after President Trump announced a 90-day pause on tariffs, but raised the taxes on China.
Facing a global market meltdown, the move boosts confidence after economists shared concerns about a recession
However, some people are still worried about their future.
After the stock market plunged last week, anxiety spiked for those who saw their retirement accounts take a major hit.
"I've lost a ton of money, and the uncertainty as I'm nearing retirement makes me realize I may have to work longer," said Baltimore resident Sharon Achinstein.
Cherubini says that for young investors seeing a drop in their 401 (k), they still have plenty of time to recover. For those inching closer to retirement, you may need to strategize differently.
"It may be worth looking at your balance and potentially shifting to safer securities, things that are not going to have the same volatility," Cherubini said.
In a recent CBS News poll, Americans' outlook on the economy is mixed. with 70% of people reporting they're anxious about their retirement savings.
"You just don't know, every day you get up, it's just always something," Baltimore resident Arlene Jones said..
Achinstein told WJZ that she's working on a new retirement plan.
"I'm really going to have to think when I retire and might have to delay retiring to make up for what I lost," Achinstein said.
Cherubini says one thing people can do if they're still not sure what to do is reach out to a financial advisor.
According to CBS News
, financial experts warn that people should not panic over the stock market declines because it could lead to impulse decisions that could be costly.
Rather, financial experts say to key on
these important investment questions
before taking action.
Seven of 10 workers feel that even if they work until retirement age, they still will struggle to survive, according to CBS News, citing a Transamerica Center for Retirement Studies
report
.
"Everyone is navigating difficult waters right now and trying to understand what the effects of market volatility will be on their overall retirement savings," said Catherine Collinson, CEO and president of the Transamerica Center for Retirement Studies. "One thing they should be doing, but many aren't, is engaging in the basics."
