RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Volatile Market Threatens Retirement Real Estate

Home Consumer
By Liz Dominguez
February 26, 2018
Reading Time: 3 mins read
Volatile Market Threatens Retirement Real Estate

Investment risk and uncertainty in the real estate housing market

The stock market has been on a volatile patch after plunging nearly 1,600 points at the beginning of February—and, while stable now, consumers and investors are watching closely. With many public pension plans tied to stocks, the incoming retirement community is hoping for a full recovery to recoup losses.

Many public pensions have already reported a loss. The California Public Employees’ Retirement System—the largest public pension fund in the nation—lost $18.5 billion in value over 10 trading days at the beginning of the month, according to the Wall Street Journal. While diversifying from traditional stocks and bonds decreases the risk of massive losses during a market drop, investing in alternative assets can introduce complex selling regulations and added fees.

Millions of government workers are relying on these plans, and with various states in a pension shortfall, employees are at risk of losing much-needed funds. The Wall Street Journal reports that most pension funds need to earn between 7-8 percent each year in order to pay for future benefits. According to Kiplinger, a few states are struggling to meet this goal: Illinois, Connecticut and Kentucky need to recover half of their estimated liabilities. In order to meet these objectives, hired firms are setting aggressive investment targets, which can potentially fund these accounts at a quicker pace, or may cause a steep fall-off, depending on stock market activity.

While most pension plans do not provide enough funds to financially carry an individual through their retirement, for many, they are the primary benefit they will rely on. For 30 percent of public-sector workers in 12 states, Social Security is not an option, according to CNN Money. The inability to control which assets their employer’s hired firm decides to invest in can be frightening for soon-to-be retirees who are watching funds diminish in the wake of this month’s market downturn.

What does this mean for real estate?

Future retirees, for one, may not have as many options when it comes to housing and paying off existing mortgages. Retirement-aged consumers who owe on their mortgage and do not receive the necessary funds to pay their debt, in addition to living expenses, may find themselves in a difficult situation. Individuals that were initially planning on downsizing and/or investing in a vacation property may find they need to refinance or risk losing their home to foreclosure or bankruptcy. These public pension plans in relation to stock market activity may also prompt homeowners to stay in their homes and at their jobs longer to secure more funds and ensure a financially safe future. With less downsizing, market inventory may be affected, creating shortages for move-up buyers.

With pension funds dwindling, the Public Pension Project—created by the Urban Institute’s Program on Retirement Policy and State and Local Finance Initiative—is working toward reform by examining current public pension trends and activity throughout the U.S. A State of Retirement map compiles this data to present detailed state-by-state information on plan rules.

Firms are adapting to the volatile market, selling off stocks and diversifying where needed, but only time will tell if these are sound investment decisions that will provide enough funds for the millions of Americans that need this income for their retirement and future real estate needs.

Dominguez_Liz_60x60_4cLiz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: KiplingerPension FundsPension PlansPublic Pensionsreal estate newsRetirementStock MarketUrban InstituteWall Street Journal
ShareTweetShare

Liz Dominguez

Related Posts

eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program
Industry News

eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program

July 1, 2025
NWMLS
Agents

NWMLS Accuses Compass of Demanding ‘Free Riding’ in Lawsuit Response

July 1, 2025
Engagement
Agents

More Face Time: 3 Ways to Boost Engagement With Selfie-Style Content

July 1, 2025
Fed Chair Blames Tariffs for Pause, Uncommitted on July Rate Cut
Economy

Fed Chair Blames Tariffs for Pause, Uncommitted on July Rate Cut

July 1, 2025
Real Estate Magazine
Agents

The July Issue of Real Estate Magazine Is Now Live

July 1, 2025
Forbes Global Properties Expands Italian Presence with Sicily’s Rizzotti Advisors
Industry News

Forbes Global Properties Expands Italian Presence with Sicily’s Rizzotti Advisors

July 1, 2025
Please login to join discussion
Tip of the Day

Growth, Strategy and Excellence: Transform Your Brokerage at RISMedia’s CEO Exchange

Join top brokers Sept. 3–5 in Washington, D.C. to exchange cutting-edge strategies, gain market insights, foster elite networking—and propel your brokerage toward profitable growth and lasting success. Register now.

Business Tip of the Day provided by

Recent Posts

  • eXp Realty Names Lofty Preferred Solution Provider in New CRM of Choice Program
  • NWMLS Accuses Compass of Demanding ‘Free Riding’ in Lawsuit Response
  • More Face Time: 3 Ways to Boost Engagement With Selfie-Style Content

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X