What to say to employees who are worried about their 401(k) accounts
Because the stock market has been volatile in 2025, employees may be nervous about what that’s doing to their 401(k) accounts and look to their HR department for guidance. Being an HR professional, however, doesn’t make you financial adviser. But what can you say to help reassure them?
First, it’s important to draw a line between education and advice. When approached by concerned employees, you may emphasize the long-term nature of these types of accounts. It’s okay to remind them that 401(k)s are for retirement, and the best approach traditionally has been to avoid drastic actions.
You should not, however, cross the line and give specific advice about:
- Buying or selling stocks,
- Taking money out of an account, or
- Reallocating investments.
Advice in those areas should be left up to professionally licensed fiduciaries. Fiduciaries are financial advisers who are legally obligated to act in the best interest of their clients.
3 steps HR might take to help those worried about their 401(k)s
- Offer financial wellness programming. This might include connecting employees with sources of personal finance information, such as company-sponsored events, online tools, and other information to help them become more financially literate money managers overall. Something as simple as a retirement calculator can help people understand the long-term impact of contributing to a 401(k) account.
- Lean on your provider. The 401(k) provider for your company has fiduciary responsibilities. Now’s the time for them to show how they add that value to their services by acting as a clear- and level-headed source of information during times of volatility. It can be helpful for employees to hear from advisers who work for your provider, whether in an individual or group setting where employees can ask questions. Access to an adviser might make employees more confident about their retirement savings despite what the market is doing.
- Be empathetic and supportive. Acknowledge that employees may be feeling anxious about their financial futures, and that they are not alone. Reassure them that historically, volatility has been short-lived, with market conditions stabilizing over time.
Key to remember: Employees may be worried about their 401(k) account balances during times of market volatility and look to HR for help. It’s important to be supportive, and provide education, but leave financial advice to the experts.