(NewsNation) — Recent stock market swings have made retirement savers uneasy, but that doesn’t mean people should completely overhaul their strategy.

In the first half of March, trading activity in 401(k) plans surged to four times the usual level, with most of the money shifting out of stocks and into lower-risk fixed-income investments, according to Alight Solutions 401(k) Index.

The rise in trading activity suggests that some retirement savers are taking a more hands-on approach after President Donald Trump’s on-again, off-again tariffs set off a wave of economic uncertainty that sent stocks lower.

For the first time since 2023, the S&P 500 found itself in correction territory earlier this month, slipping more than 10% below its peak.

Watching the value of one’s hard-earned retirement savings drop can be difficult, but it’s generally a bad idea to make rash decisions during market turmoil.

“The thing that I would really caution people against is panicking, selling to cash and trying to run for the hills,” said Stephen Kates, a certified financial planner and financial analyst for Bankrate.

Instead, Kates said, people should look at how their money is spread across different asset classes to make sure their investments match their goals.

Here’s what to know about rebalancing a portfolio and whether now is a good time to do it.

Should I rebalance my portfolio when stocks swing?

It’s natural to want to move retirement savings to lower-risk investments when the stock market is volatile, but responding to short-term fluctuations isn’t recommended.

“For the most part, people really shouldn’t be changing their strategies at all,” Kates said.

That said, it’s worth making sure a portfolio is diversified across a range of assets and in line with one’s risk tolerance, which largely depends on age.

In general, the younger people are, the more risk they can take. For those not close to retiring, a portfolio should lean more toward stocks for long-term growth.

On the other hand, those nearing retirement have less time to recover from market downturns, so they typically want to shift toward lower-risk investments such as bonds and annuities.

If you’re approaching retirement and haven’t looked at your asset allocation in a while, then you should consider it — you may be more exposed to stocks than a level with which you’re comfortable.

A common guideline is the Rule of 110, which suggests subtracting your age from 110 to determine the share of your portfolio that should be in stocks. For example, a 40-year-old would allocate 70% to stocks and the rest to fixed income.

For many investors, rebalancing once a year is optimal, according to Vanguard. But that doesn’t mean one’s strategy should be based on what’s going on in the stock market.

“Experts often caution against trying to time the market, and with that in mind, rebalancing right now because of market volatility is a questionable strategy,” said Sam Taube, an investing spokesperson and writer at NerdWallet.

Taube said rebalancing now could be a good idea if it matches your annual plan, but doing it to “‘buy the dip’ is sketchier.”

Depending on your 401(k) plan and the funds you choose, your investments may automatically rebalance.

Target date funds, for example, automatically adjust your asset allocation as you approach retirement, gradually shifting from riskier investments to more conservative ones.

For example, if you’re 25 and plan to retire at 65, you may choose a 2065 target-date fund. Early on, the fund’s assets will be geared toward higher-risk, higher-reward investments, typically stocks, and then over time, it will shift toward lower-risk fixed income assets.

What if you are already retired?

You should be even more careful about selling stocks during a pullback if you’ve just retired. That’s because of the so-called “sequence of returns risk.”

Poor investment returns early in retirement “can cause a permanent erosion of your wealth,” potentially impacting how long your nest egg lasts, according to Fidelity Investments.

Part of the risk is that losing investment value early on means there’s less capital available to grow when the market rebounds. Bear markets that come later in retirement generally don’t have as severe an effect.

“Rather than selling stocks into a decline, try to pull other levers during those critical early years,” Fidelity says.

That could mean trimming your bond holdings to generate cash or temporarily reducing spending to weather the storm.

While it’s not guaranteed, stock market downturns are often followed by a period of positive gains. Some of the best days on Wall Street came shortly after the worst.

Keeping a robust emergency fund in retirement is also a good idea. Instead of an emergency fund with three to six months of living expenses, retirees might need six to 12 months’ worth of cash, Kates said.

“Having something that is low risk or no risk, that you can draw on and avoid having to pull from your portfolio will allow that portfolio to recover,” he said.

Is it a good time to increase 401(k) contributions?

A stock market pullback can present a good buying opportunity, meaning those who can afford to may want to increase their 401(k) contributions.

“Only time will tell if we’ve already hit the bottom of this tariff-related market downturn — markets could go lower from here,” Taube said. “But even if they do, it’s still a good move for long-term, retirement-oriented investors to invest as much as they can, as early as they can.”

Kates said upping retirement contributions is a good idea for those who have a strong financial foundation in place and it doesn’t leave them more vulnerable later on.

“The last thing you want to do is raise your contribution today only to have to take a loan or withdrawal from your 401(k), or have to go into debt because now you’ve got an expense that you weren’t able to manage,” he said.

For retirees and savers concerned about stock market swings, putting money in a high yield savings account or certificate of deposit is a way to earn steady returns risk-free. They’re not ideal for long-term retirement growth, but they offer a safe and reliable option for savings, especially if you’ll need the money soon.