One of the biggest worries people have in North Carolina when the market starts to plunge is what will happen to their savings. Correctly positioning your investments is important to avoid years of retirement savings going down the drain. Here are three things you can do to protect retirement savings in the face of a possible recession.

Diversify your investments

Reallocating and diversifying investments is a great first step to take when facing a possible recession and adjusting your retirement plan. You don’t want all your investments to be in just a few assets. A healthy mix of stocks and bonds reduces risk. For example, during volatile periods in the market, defensive stocks stay the course. You may want to invest in utilities and healthcare since these things do well during market downturns.

Delay Social Security

Consider the benefits of delaying Social Security if you have the circumstances to do so. Delaying the distribution phase can give you a bigger monthly check when you start.

A great way to protect yourself in the face of a recession is to continue to make money. Thinking of how you can continue earning during retirement will give you the benefit of multiple streams of income.

Make the best use of annuities

When used the right way, annuities can provide safety and returns in the face of a recession. This contract with an insurance company will give you payments over a set time. When looking at annuity options as part of your estate planning, be sure you understand how they tie to the market and how their interest rates can fluctuate.

It is vital for you to prepare your portfolio since you will likely live through several recessions. Focusing on income-generating investments and diversifying your holdings puts you in the best position to get through any market downturn.