“’While a cut in benefits is disappointing, workers should not necessarily change their contribution,’ says Neal Nolan, a certified financial planner with Parsec Financial. ‘This could be a huge mistake, especially at current market levels. Dollar-cost averaging is really important and over time the market will rise to a new high.’
From a retirement readiness perspective, he says workers will be much better off continuing their contributions. ‘However, there are circumstances when it may be prudent to reduce or stop salary deferrals,’ says Nolan. ‘That decision should be carefully weighed. If a worker stops contributions, I recommend restarting them as soon as possible.’”
