The global pandemic, war in Ukraine and other world events have contributed to wild swings in the stock market. Retirement savers have seen both tremendous gains and precipitous losses in their 401(k) investments over just the past two years.
A steep drop in the stock market can be particularly devastating to retirees, who have few options to replace their depleted life savings. But there are a variety of ways for retirees to prepare for and cope with stock market declines so that their day-to-day income needs continue to be met, regardless of market conditions. Here's how to protect yourself from stock market risk in retirement: