Seesawing Retirement Balances Worrying Workers, But HR Can Help

Employees already have several reasons for financial stress, but watching their retirement account balances is one of the latest. 

Recent market volatility, much of it driven by the Iran war, has been seesawing retirement account balances — causing panic and uncertainty among employees — and creating a workplace problem employers may need to help solve.

Balances have predominately slipped over recent weeks but temporarily bounced back up after President Donald Trump announced a two-week ceasefire with Iran.

“Volatility is uncomfortable, and it is natural to feel anxious,” said Dan Guhl, private wealth adviser at Northwestern Mutual and partner at Prescient Financial Solutions in Milwaukee. “But reacting emotionally can lock in losses.”

For some employees, that volatility may be more fodder for them to decrease retirement savings rates. That’s already a troubling trend, with payroll and HCM firm Dayforce finding that 1 in 4 full-time workers reduced their annual savings in their 401(k) or other types of employer-sponsored accounts in 2025.

“The anxiety makes sense. When you’re already stretched and your account balance swings, the instinct is to pull back,” said Jason Rahlan, global head of sustainability and impact at Dayforce in Brooklyn, N.Y. “But, sometimes, pulling back can be one of the costliest things you can do.”

Employers are in a unique position to offer guidance on retirement funds during this volatile time. Providing messaging to keep workers updated about their fluctuating retirement accounts can help calm anxieties and encourage them to keep saving.

Staying the Course

One of the biggest things employers should be sharing with their employees is basic education and reminders about their workplace retirement accounts — namely, that a 401(k) account is a long-term investment and is meant for retirement. They can share that market volatility is a natural occurrence and making rash decisions based on account balance swings is generally not in their best interest. 

“Retirement security is built on consistency,” Rahlan said. “The workers who come out ahead are almost always the ones who stayed the course, kept contributing even when it felt hard, and didn’t let short-term volatility change long-term habits.”

HR leaders can also remind employees about any employer retirement match and how making any changes to their retirement accounts might affect the match.

The message, Guhl added, is that employees “should keep contributing to retirement accounts, especially to capture any employer match, and avoid tapping retirement accounts early unless it is truly necessary.”

Still, some employees may have unique circumstances when it comes to their financial situation. Employers can tell employees where to turn to get more information about their personal situations, including any financial or retirement advisers that the company works with.

“For most long-term savers, staying invested with a plan, rather than panicking and pulling out, will historically be the better approach, but every situation is unique and benefits from a thoughtful plan,” Guhl said.

Offering Reminders about Financial Help

Now would also be a good time for HR and benefits leaders to remind employees about opportunities that could help them. In addition to a full match capture, HR pros should also encourage other behaviors that support long-term success such as auto-escalation, providing access to educational resources, and promoting tools that help employees model multiple scenarios. It is also a good idea, Guhl said, to remind them about contribution limits for the year.

Fact Sheet: 2026 Benefit Plan Limits and Thresholds

In addition to specific retirement tools, HR leaders can encourage employees to explore other financial resources that may help calm their retirement fears, such as an emergency savings account or taking advantage of any financial wellness tools or benefits offered by the company.

“While employers can’t control the broader economic environment, they can control how they invest in their people through thoughtful policies, meaningful support, and a genuine commitment to empowerment,” Rahlan said. “That starts with helping employees make real progress toward the secure retirement they’ve worked hard for and deserve.” 

The Importance of Employer Support

For employers, this is a moment to show up for employees and help them better understand their retirement and financial benefits, Rahlan said.

“Don’t leave people to navigate this alone,” he said. “People are increasingly looking to their employers for help, and giving it to them can make them feel more valued and seen. How organizations respond right now, especially for workers who are already stretched, will really matter.”