T. Rowe Price posted a piece entitled, "Market Setbacks Don’t Need to Set Back Your Retirement Plans," which tells us, "Late last year, in our 2022 U.S. Retirement Market Outlook, we expressed our concern that investment returns might be lower over the next several years than they have been historically. Little did we know that our concerns would materialize so fast. In the first half of 2022, the S&P 500 Index dropped 21%. For those of us involved in retirement planning, the recent volatility begs the question of whether -- and how -- retirement savers should react. We address this question by revisiting our retirement saving guidance, particularly, our suggested saving rate of 15% (including employer contributions) and age‑ and income‑specific savings benchmarks. We also outline possible strategies for workers and retirees to adapt to the current market conditions." It explains, "When heading into retirement, we suggest a cash buffer that could cover one to two years of spending needs. Having an alternative and stable source available to fund expenses can be particularly helpful in a down market to give retirees cover until their investments rebound. Consider holding these assets in a bank savings or money market account; short‑term bond funds; short‑term certificates of deposit; or, if in a high tax bracket, tax‑free short‑term bond or money market funds. This money provides retirees access to short‑term liquidity so that they do not have to withdraw from their longer‑term investments."

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