How to manage stock market volatility in retirement

We all feel the pain of falling stock markets but it can be particularly stressful when you are retired and depending on your investments for your income in retirement.

Fidelity.com  advice not to panic and start selling stocks, consider other income sources, and review your withdrawals and spending.

Fidelity give six tips for volatile market:

1. Guarantee that you essentials are covered – consider an income strategy where your guaranteed income (state pension, annuities etc ) cover your housing, food and other essential expenses.
2. Cash may provide a cushion – when the markets are down use cash instead of selling equity investments
3. Be strategic about investment income – After cash, consider using assets from taxable accounts first before Pension funds and ARFS.
4. Check you withdrawal rate – consider adjusting your withdrawal rate or suspend indexation.
5. Consider alternative income sources – a part time job, rent out a room in you home or rent out a holiday home.
6. Get used to volatility   – “Market volatility is part and parcel of investing, so when you build a retirement plan, you can count on the fact that your balance will be moving in both directions