“How Exposed Are Retirement Savings to Market Risk?” Source: Center for Retirement Research
The brief’s key findings are:
When COVID-19 emerged earlier this year, the stock market fell by 35 percent in one month. While the market has largely recovered since, it remains very volatile.
Market shocks are a growing concern to the more than half of U.S. households who now own equities, mainly due to the shift from traditional pensions to 401(k) plans.
For most households, 401(k)/IRA assets are their largest financial asset – other than Social Security – which puts them at risk from market downturns.
The time may have come to consider some type of risk sharing for employer plans so that individuals do not shoulder the full burden.
ABOUT IPPFA
The IPPFA was founded in 1985 as a not-for-profit organization whose mandate was to educate public pension fund trustees. In 2009 the IPPFA became the primary education provider for public pension fund trustees in the state of Illinois. Our members manage over eighteen billion dollars in pension assets.