Recession-proofing your retirement plan is a good idea, because recessions are a natural part of the economic cycle. Even if the country doesn’t enter a recession by 2021, one will occur at some point. So what should you consider when preparing your retirement plan for a downturn?

Your Savings And Investments

A recession could mean that a potential retiree must delay retirement to ensure the level of savings and investment that will carry them through their post-work life. In keeping, I’ll discuss some of the ways you should and shouldn’t approach saving and investing if retirement is near — or if you already have retired — and a recession is looming.

Because it’s tougher to save or invest once your income is lower, make the proverbial hay, and double down on savings before you retire or your income otherwise dips. If you have to pay down debt before amping up savings, do so, but don’t keep pushing savings and investment too far out.

You should already have a emergency fund. Don’t have one? Get cracking; having such in place is especially important with recession on the horizon.

As you get more agile in investing and saving, beware that some aggressive stances are not best for those close to retirement. For instance, going all-in during a market dip, gambling that you’ll gain one big pot of money is especially unwise for retirement-minded folks.

Where And How You Live

In short, your vision of retirement and corresponding plans, savings and investments may look one way, but a recession could change the game. For instance, economic pressures might cause your employer to reduce benefits or jobs. You might earn less on savings and investments as rates drop. Market rates may mean the real estate payoff you’ve counted on evaporates or is reduced.

So, preparedness now includes a fresh look at how long you work; how you might supplement your income, lifestyle and logistics; and how much to save and invest — and when, how and for how long. And, with recession chatter becoming louder, taking a recession outlook at your retirement plans is likely something you may want to do even if you don’t fall in the near-retirement category. (Again, cyclically, recessions are a given, so better safe than sorry.)

This fresh look at your finances may mean making lifestyle changes sooner rather than later to enable your more aggressive saving and investing. If you were not already doing so, live below your means to maximize what you can put away.

That could mean downsizing or right-sizing sooner than you had planned. If you still have a mortgage and expect to into retirement, you’re likely best off with a fixed-rate mortgage. An adjustable rate mortgage can create surprises later.

Your Income Stream

Similarly, if you are still working, hunker down, as employment becomes more tenuous in the run-up to, during and just after recessions. So, if you’ve been “coasting” toward retirement, reinvest yourself in your job to make certain that you can keep working as long as you want to.

And no one likes to hear it, but if your retirement nest egg looks tenuous, consider looking for ways to earn extra income, whether that’s a side job, sporadic contract work or, if your job has ended or does so due to the recession, a part-time gig to fill in until a new job comes along or you are retirement ready.

Your Benefits

Likewise, look at what and where you pay for benefits. For example, if you have a high deductible on your health policies, consider lowering those before an economic downturn, when covering a large deductible might be more difficult than paying slightly higher premiums.

Do not jettison your life insurance policy or any other investment vehicles or benefits in a panic. Make sound choices for the long term. Premiums or other contributions to a financial instrument may seem temporarily untenable, but weigh short-term relief versus long-term gains.

In the case of life insurance, that can mean having something in place for heirs who may also be affected if the size of your retirement nest egg decreases. Another option is selling your policy in a life settlement, which generates money you can then redirect (as opposed to letting a life policy lapse or simply accepting cash-surrender value).

Your Financial Advisor

If you’ve had any doubts about your financial advisor, resolve those prior to an economic downturn. I’m not saying to jettison your financial planner or registered advisor, but murmurs of a recession are good motivation to make sure you are comfortable with the advice you’re getting and with your portfolio performance and makeup. That might simply mean having a tough conversation about economic inevitables.

One element of the retirement advisor-client dynamic that’s especially crucial if a recession is in the offing is being realistic about risk. In addition to getting real with yourself about a realistic, comfortable level of risk, ask your advisor if they use any behavioral insight tools. This could be a questionnaire of sorts that helps you — and your advisor — get a better idea of how you make financial and life decisions. Having such insights serves you well and helps them serve you better, especially if a recession is stalking your retirement.

Don’t Panic; Prepare

If you prepare for a recession and one happens later or is not as severe, you’re in that much better shape. But if one does happen soon, you’ll be better set for a more comfortable retirement. Better safe than sorry.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.