November 23, 2022

More workers are nervous about the current state of their finances and whether they’ll be able to stay on track for the future, but one recent study shows that the volume of retirement savings stayed much the same in Q3 despite these concerns.

Recent Fidelity research found that around one in three workers is worried about the current state of their overall finances, but another third of those same survey respondents reported feeling positive. Last year at this time, 45% of survey respondents were positive about their finances while only 22% were worried.

Average account balances in 2022 did decrease, the total savings rates in 401(k) plans stayed relatively steady. Further, the study, which included 35 million different retirement accounts, said that the number of account holders who have taken out loans from their retirement accounts is low.

In times of recession or rising inflation, most people sit down to look at their financial picture to determine ways they can more appropriately manage their needs. It’s rarely the best decision to pause on savings for IRAs or 401(k)s, however, unless you have no other option. You’ll miss out on the magic of compound interest during the time you take off, and you will not experience any positive gains when the market bounces back.

If you’re concerned that your current portfolio is a little too high-risk, however, talk with your financial professional to see if you have other options for adjustment. Continue to contribute towards your retirement savings if you can during this period, but look for other means for adapting to volatile markets if that’s of interest to you.