• Market Volatility: Impact to 401(k) and Pension Plans

    March 25, 2020

    While the current market ups and downs are likely causing stress among many of us - it's important to remember that saving for your retirement is a long-term investment. Continuing to invest in a down market, can provide an opportunity for your retirement plan savings to actually buy more for less—and work to your advantage. When markets decline, remaining invested has often been a good strategy for long-term investors.

    Contributing to my 401(k)

    By contributing regularly, you buy shares of investments at different prices, and different quantities, when markets rise and fall. These ups and downs result in the potential to lower your average share cost. Learn more …


    How are pensions impacted?

    Defined Benefit (Pension) benefits are determined by the plan's formula and will not change due to market volatility. This is because employers are responsible for keeping the plan funded in order to pay the formula benefit. A basic difference between pension and 401(k) plans is employers assume the investment risk for pension plans and employees assume the risk for 401(k) plans. 

    More on market concerns and COVID-19

    Use our resources to stay informed on what is covered by the Farm Credit Foundations Medical Plan, ease concerns you have about the current market volatility, and address the stress you may experiencing. View the COVID-19 resources.