How To Turn Market Volatility Into Retirement Opportunity

It’s no secret that there’s a lot happening in the world right now.

With unpredictable markets, rising inflation, and talk of ISA and pension reforms, it’s no wonder you might be feeling uneasy about your retirement plans. But uncertainty doesn’t have to be a bad thing – in fact, with the right advice, it could actually work in your favour.

In this blog, we’ll break down the steps you can take to keep your retirement plans on track and explore ways to turn volatility into opportunity, including tips on investing during market dips and rethinking your retirement strategy.

1. Keep Investing, Even When the Market Dips

When things feel wobbly, it’s tempting to stop your pension payments or shift everything into cash.

But if you’re still working, sticking with your regular contributions (or even increasing them if you can) could be one of the smartest moves you make.

Why?

Because when markets dip, your investments are essentially ‘on sale’. That means you’re buying more for your money – a concept known as pound-cost averaging.

What’s Pound-Cost Averaging?

It’s simply the strategy of investing a fixed amount of money regularly, no matter what the market is doing.

• When prices are low – your money buys more.
• When prices go up – it buys a bit less.
• Over time – it evens out and smooths the bumps.

Think of it like buying strawberries:

• Week 1: £2 a punnet
• Week 2: £1 a punnet
• Week 3: £1.50 a punnet

If you spend £6 each week, you’ll end up with more strawberries when they’re cheaper. The same idea works with investments. There’s no need to constantly time the market.

Why it works:

• Reduces the risk of investing a lump sum at the wrong time.
• Keeps things steady and stress-free.
• Great for regular payments like pensions and ISAs.

2. Thinking About Delaying Retirement?

We’re big believers in helping you retire when you’re ready –  ideally sooner, if you can.

But if markets are down, delaying retirement by even a year or two can make a big difference.

Here’s How Delaying Can Help:

• More time for recovery: Your investments have longer to bounce back.
• Fewer withdrawal years: Your pension pot doesn’t need to stretch as far.
• Extra contributions: You can keep building up your National Insurance contributions and boost your State Pension.

And if you’re thinking about delaying your State Pension, it might even reduce your tax bill. Check out our blog: ‘Should You Delay Your State Pension to Save on Tax?’ to find out more.

3. Retirement Doesn’t Have to Be All or Nothing

You don’t have to go from full-time work to full-time retirement overnight.

In fact, easing into retirement can feel a lot more natural – and financially rewarding.

There are plenty of ways to do this – part-time work, freelancing, or finally pursuing that passion project. It’s about finding what works for you.

Why Easing In Works

• Tops up your income.
• Maintains a routine and sense of purpose.
• Gives your pension pot time to grow.

Wondering what phased retirement could look like for you? We can help you explore options that suit your lifestyle and goals.

4. Turn Market Volatility Into Opportunity

When the market’s unpredictable, it’s easy to feel nervous – but it’s also a good time to take stock.

Here’s a few things to consider:

Rebalancing Your Investments

Sometimes, one part of your portfolio grows faster than the rest. Rebalancing (selling some of the overperformers and topping up the underperformers) can help keep your strategy in check and minimise investment risks.

Make Smart Tax Moves

If you’re earning less and your income drops, you might fall in a lower tax band. That could be a good time to:

• Take a tax-free lump sum.
• Use lower tax bands efficiently.
• Share assets more tax-effectively with loved ones.

Rethink Property

If moving or downsizing has crossed your mind, now might be the right time. Shifts in the housing market could free up some cash to support your retirement goals. We cover this more in our blog on downsizing in retirement here.

5. Understand Market Phases – and What to Do in Each One

Markets move in cycles, just like the seasons. And understanding them can help you respond wisely instead of just acting with emotion.

Here’s a quick breakdown:

Market Phase	What’s Happening	What You Can Do
Bull Market	Prices are rising, investor confidence is high	Stay invested but check your balance – too much risk can creep in.
Correction	Short-term drop of 10-20%	Don’t panic. Keep going – you’re buying more for less.
Bear Market	Longer-term downturn	Stick with it. This is where regular investing shines.
Recovery	Prices start rising again	Stay invested and enjoy the growth from earlier contributions.

 

Let’s Chat About What Works for You

Markets will always move. But your retirement plan should move with you, not against you.

So, if you’re thinking about changing your plans, easing into retirement, or just wanting to get your questions answered, we’re here for a friendly chat.

At Joslin Rhodes, we’ve been helping people across Teesside retire happily and confidently for over 20 years – and we’d love to help you too.

Ready to talk it through? Get in touch with our team today.