PARTICIPANT EDUCATION
Help participants navigate volatile markets
Summary
Whenever the market is volatile, it is natural for people to get nervous and want reassurance about the sustainability and health of their retirement savings.
Many of your plan participants may have been impacted by the COVID-19 pandemic. In addition to the health risks, they may also be grappling with financial fallout, especially if they were heavily invested in stocks that were negatively affected by the virus. Although those stocks may rebound and increase in value over time, your participants may be hesitant to resume course, not wanting to expose themselves to more potential volatility.
Common questions from participants
Uncertainty isn’t easy for anyone, least of all your plan participants. They may come to you for guidance on how to navigate volatile markets. Here are some common questions they may ask:
To share with participants
MATERIALS
Here are some collaterals for you to share with your plan participants. The goal is to keep participants on track to save for a successful retirement, even through difficult financial markets.
Materials for you
4 ways to stay calm when markets stumble
Market volatility gives plan sponsors an opportunity to talk about what to do – or not to do – if there is a sustained downturn.
Guide to current markets
We’ve compiled insights to help guide you during unsteady markets.
Tips for success
Talk to participants.
Don’t wait for them to come to you with questions. Be proactive during times of volatility and send emails reminding them of why it is important to stay the course. Attach copies of the handouts listed below.
Acknowledge their feelings of anxiety.
Market volatility can be scary, especially for younger participants who haven’t experienced down-market cycles before or those nearing retirement. If they have a long-term investment plan that was put into place during calmer times, refer them back to their initial strategy to help them maintain their focus on their long-term goals and keep their emotions in check. If their goals haven’t changed, in most cases, their plan shouldn’t either.
Prepare them before volatility strikes.
The best way to help participants stay calm is to educate them before the next bear market. Give participants the tools to develop an investment plan that is designed to help them manage risk as your employees work to achieve their investment goals. Explore our participant education resources to find materials to share on topics such as asset allocation and risk tolerance.
Explore more participant education resources
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Participant Education
Balancing risk and reward
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Participant Education
Diversify your assets
*Sources: Capital Group, Standard & Poor’s.
The Standard & Poor’s 500 Composite Index has typically dipped at least 10% about once each year, and 20% or more about every six years, according to data collected from 1950 to 2019.* While past results are not predictive of the future, each downturn has been followed by a recovery and a new market high.