What Should Retirees Do in Times of Panic?
- Jordan Defazio
- 2 hours ago
- 4 min read
With today’s headlines, it can feel like the world is falling apart.
Everytime you turn on the news you immediately go into alert mode.
And when that happens, fear, stress, and the impulse to react follows close behind.
With the cost of living and medical expenses rising, uncertainty can make retirement feel more vulnerable.
But that’s exactly why a retirement plan exists in the first place.
Your plan is meant to be the life raft that provides stability when markets become turbulent.
It is designed to weather storms so that you don’t have to panic every time waves appear.
Because there’s no room for panic in a financial strategy.
Why You Shouldn’t React to Market Panic
When you watch the news, it always makes you feel like something urgent is happening and that you should be doing something about it.
During those moments of anxiety, it can help to remember a simple mantra:
“Markets move quickly, but retirement lasts decades.”
Close your eyes and repeat it three times.
Welcome back.
The reason that mantra matters is because reacting emotionally to short-term market movements can create long-term consequences.
When investors panic, they often make decisions that feel right in the moment but prove costly later.
Some of the most common reactions include:
Moving entirely to cash and missing the recovery
Trying to time the market instead of staying invested
Selling investments during downturns, which locks in losses
And when markets eventually recover, the emotion that often follows those decisions is regret.
At PKAG, we’ve seen that regret happen time and time again.
In fact, part of the reason our group exists today is because of the financial mistakes our own parents experienced during times of market stress.
After more than twenty years and hundreds of client relationships, one principle remains clear:
The goal is not to eliminate volatility.The goal is to prevent volatility from driving your decisions.
What Retirees Can Do Instead of Panic
Headlines will come and go and markets will always change.
But there are a few constants retirees can rely on during uncertain times.
1. Revisit Your Retirement Plan
Even though markets fluctuate, your plan should be the anchor that keeps you grounded.
During periods of volatility, one of the most helpful things you can do is revisit why your retirement strategy was built the way it was.
Ask your financial advisor:
Why was this investment strategy chosen?
What happens if markets decline temporarily?
How does the plan account for market volatility?
Many retirees are often told they can only spend a fixed amount each year in retirement.
But a well-designed plan often accounts for flexibility, market cycles, and changing conditions.
Understanding how your plan works can help restore confidence when uncertainty rises.
2. Focus on the Long Term, Not Daily Market Swings
Markets can feel unpredictable when viewed day to day.
But historically, the longer investors stay invested, the greater the probability of positive returns. 1.
Historically speaking:
One day in the market: roughly 50/50 odds
Five years invested: roughly 80–85% probability of gains
Ten years invested: roughly 90–95% probability of gains
Retirement planning is built around long time horizons.
If your retirement income comes from multiple sources such as pensions, dividends, and structured withdrawals, short-term market movements often become less important.
The key is designing your portfolio in a way that allows you to stay in the game long enough for the long-term trend to work in your favour.
3. Separate Headlines from Long-Term Trends
Financial media is designed to capture your attention and to make it feel like you’re not doing enough..
Unfortunately, that often means focusing on the most dramatic developments rather than the full picture.
Major geopolitical events, economic announcements, or market corrections can create short bursts of volatility.
But history shows that markets have recovered from periods of panic many times.
Perspective helps prevent temporary events from becoming permanent decisions.
4. Avoid Sudden Panic Portfolio Changes
Large, reactive portfolio changes during market stress often lock in losses.
Selling investments after markets fall removes the opportunity to participate in future recoveries.
For retirees, consistency and discipline often prove far more valuable than sudden adjustments driven by fear.
That doesn’t mean portfolios should never change.
But meaningful changes should come from thoughtful planning, not emotional reactions.
5. Remember That Volatility Is Part of Investing
Periods of uncertainty are not unusual.
They are part of the investment cycle.
Every decade brings its own mix of recessions, geopolitical tensions, market corrections, and unexpected events.
Successful retirement planning doesn’t rely on predicting every one of those events.
Instead, it relies on building strategies strong enough to endure them.
What Does This Mean for Retirees?
Moments of panic will test the two most important aspects of retirement:
Discipline and structure.
When uncertainty rises, the most valuable response isn’t to panic.
It’s about keeping your cool because you’re connected to your plan.
If you don’t have a plan or if it needs updating, reach out to us here.
This commentary is for discussion and informational purposes only and should not be interpreted as a recommendation, an endorsement, or solicitation of any investment strategy, or to buy, hold or sell any security. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her financial, legal or tax advisor.
David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary.
The views of David Popowich, Faisal Karmali, and the guest author and referenced material do not necessarily reflect those of CIBC World Markets Inc.
This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.
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