Age-specific tips for adjusting to Wall Street’s downturn

The issue of saving for retirement has always spawned a lot of questions. People want to know how much money they need, where they should stash it, and how to make sure that it lasts as long as they do.

The recent volatility in the market, however, has clearly pushed a new concern to the top: Will I be able to retire in this lifetime?

If you're in your late 50s or early 60s and close to retiring, or if you've already taken the plunge, it's downright terrifying.

So what do you do? Here is advice for every age group:

If you're already retired: Cut back on withdrawals from your retirement account. As a New Year's resolution, make a pact to live on the same amount that you withdrew in 2008. No adjustments for inflation. You'll have to make a few changes to your standard of living, but it's a painless way to ride out the storm. In the meantime, you might seriously consider taking on a part-time job, if you can find one.

If you're a few years out: A lot of people panic at this point because they hear experts saying that money you need within the next five years shouldn't be in the market. They think that because they're within five years of their retirement date, they need to pull out completely. But that's the wrong approach. You have to remember that you're not going to need the whole of your investments on the day you leave the work force; you're going to need about one year's worth of living expenses. The bulk of your money is going to stay invested for 10, 20, or even 30 more years.

"You have to stick with your long-term asset allocation," advises Christine Fahlund, senior financial planner at T. Rowe Price. "You're looking at probably another 35 years that you or your spouse may still be alive, so you're not talking about short-term."

If you're still nervous, though, you might scale back on your 401(k) contributions and instead put that money in safe investments until you have the equivalent of a few year's worth of anticipated expenses, says Bill Losey, author of "Retire in a Weekend."

If you're in your 50s: At this point, you're really just riding it out. You likely have 10-plus years before you'll start taking withdrawals, so you should keep up your contributions. Double check that your asset allocation is still one you're comfortable with, but don't pull out simply because you're experiencing a lot of losses right now.

Another concern for this age group might be having enough money to cover health-care expenses in retirement. This is where long-term care insurance comes into play, and the best time to buy is now. Wait until you hit 60 and you'll pay more.

If you're in your 20s, 30s, or 40s: This is the group that's really going to benefit from this market, although it may not seem like it quite yet. First, you need to make sure you have an emergency cushion, so if you don't have at least six month's worth of expenses in a liquid savings account, focus on that for now. Once that's set, move on to your retirement goals.

"This is a fabulous opportunity to buy low. You'll get more shares for the money you contribute to your retirement plan. You're going to buy up more shares of assets, which will grow over the years and make a significant difference in your long-term success," Fahlund explains.