Will retirees have the time to see their stocks recover?
Retirees near the end of their retirements will probably be fine.
For the rest, their ability to hold out for the duration of this bear market likely depends on whether they reserved a few years’ worth of stable income.
Fidelity data on its 30 million retirement accounts suggest that boomer investors especially tend towards aggressive stock allocations.
An investing culture geared toward aggressive stock allocation fails to consider the risk of insolvency that spikes precisely at times such as the present.
This podcast (6:20) suggests that retirement investors make stability as important a goal as growth to correct this common and fundamental problem.