The past year has pushed the economy into recession like-levels. With unemployment at an all-time high, Americans have found it difficult to keep up with bills and earnings. Some people who have been saving for retirement have had to dip into them to get back on their feet. It’s important to know which funds should be touched and how they will affect you in the future. The best advice is to try your hardest to leave your money in your retirement until you retire. Here’s how you can protect your retirement during a recession.


Maintain Contributions

It’s normal for people to struggle with determining how much to put into retirement during a recession. With so much up in the air and the stock market declining some people may be hesitant. If you ask financial advisors advice on this most will tell you that right now is the best time to invest in your retirement. As stock prices drop your elective salary being contributed can be stretched. Sticking to your current contributions and even putting a little more is a very strategic move.


Avoid Taking Out Loans

Taking out a loan can be just as bad as withdrawing money from your retirement. Many jobs are at risk during recessions so taking out a loan from the money that you’ve already saved could set you far back. Not having the money to pay back could turn into a big tax liability and cause a penalty charge on your plan. Some plans require borrowers to pay back the loans before any of the money is out back into the actual savings account. The value of your assets could begin to shrink and stop you from being able to make new investments.


Look at Asset Allocation

As the stock market begins to change more and more, many people begin to wonder if they should move their retirement funds to bonds. This could give you a better sense of security at the moment but not work out in the long run. Your assets should always be in a place where you feel like they’re safe and won’t need to be moved. Making a decision based on the current market isn’t ideal because times are constantly changing. Financial advisors can guide you in the right direction of where your retirement funds can be safe at all times.