Has COVID-19 Affected Your Retirement Planning?
The global COVID-19 pandemic has impacted virtually every aspect of our lives, including retirement.
Who would have thought a new virus could have such serious repercussions on all aspects of life? In addition from ravaging the health of many Americans, the deadly virus has triggered fears of recession and widespread financial panic. With all reports suggesting an economic downturn around the globe, retirement savings are bearing the brunt of the current crisis.
So what are the best options available to protect and secure your financial future during the pandemic? We’re here to help you mitigate the impacts of COVID-19 and make the necessary adjustments to continue your retirement journey with confidence.
For Those Who Have Already Retired
In these trying times, current retirees are experiencing financial hardships as investment avenues are generating fewer returns. Tapping into the retirement fund to cover the shortfall should be the last resort as it can drain your savings quickly. It’s important to keep your investments intact and avoid making irrational decisions in a panic mode. Sudden shifts in tactics are risky as they can negatively impact your retirement savings.
Chances are your investment scheme is sound and designed to weather these uncertain times. The best course of action is to review your future aspirations carefully and make some temporary changes to help cope with the economic upheaval. On the other hand, if you don’t have a strategy in the pipeline, now is the time to talk to retirement planning advisors for recommendations on how to modify your plan to withstand the impacts of the pandemic.
For Those Retiring in the Next Decade
If you are approaching retirement within the next 10 years, it’s likely you have accumulated adequate assets and are working towards building a retirement plan. Market fluctuations in the wake of COVID-19 are inevitable. Though the stock markets have fluctuated significantly, professionals who are experienced with retirement income solutions counsel their clients against liquidating investments during a bearish run. Selling stock at this juncture may be tempting if facing financial constraints, but it is ill-advised as such actions can have serious downsides.
It’s best to stay on track as best as possible. However, if you’re concerned about suffering losses, you should re-assess the value of your financial investments and make the necessary modifications to lessen the blow of the ongoing pandemic. A few lifestyle changes and a reduction in expenses can help save more during the current crisis. Once the pandemic fades and the economic damage is resolved you can find lucrative avenues for investment to support a comfortable standard of living in the upcoming years.
For Those Retiring in More Than 10 Years
Since your impending retirement is still way ahead, you can recover and rebound swiftly from the setback caused by a global pandemic. The key is to be patient and ride out the economic turmoil without touching your investment as it will bounce back over time. While there is no need to sell securities or inject huge amounts into any financial vehicle at this point, a good option is to make some contributions towards your retirement plan.
Given that many stock values have dipped drastically, financial experts advise taking advantage of market meltdown and locking down high-potential stocks that have plunged due to the catastrophic economic conditions. As you get closer to retirement, you should consider re-evaluating your risk tolerance and select investment options that can help you achieve your desired retirement goals.
Economic uncertainty is creating havoc across the globe as there is ambiguity regarding the severity and duration of the pandemic. It’s quite natural to be worried about your financial future, regardless of what retirement stage you’re at. A solid retirement plan that can withstand extreme market shifts over both the short-term and long-term is extremely vital.
Our financial consultant in Pittsburgh have the experience and the expertise to get you back on track during the peak of turbulent times. We will perform a full financial evaluation and offer recommendations to help you gain control over your retirement plan so that you can protect your investments and have a worry-free retirement.