More than a year into the coronavirus pandemic, we now have more information on how the event has changed our work, income, and overall lives. One of the greatest impacts has been upon those planning to retire in the near future, with one or more of the following situations affecting many of you.
An optional early retirement. Some workers nearing retirement age decided to go ahead and make the transition. These situations mostly arose due to health concerns, for either the worker or their spouse, and a fear of pre-existing conditions exposing workers to greater potential impact from covid. If your job can’t be performed from home, you might have considered this option.
A forced early retirement. Some of those nearing retirement found themselves suddenly “retired” when the doors of their company closed forever. The economic downturn was hard on many small businesses.
A “trial retirement” that didn’t stick. The unemployment rate for workers over age 65 has soared to 15.6 percent in the past year. However, many of those forced out of work view the situation as temporary. After claiming unemployment benefits they resumed their searches for new employment. This group intends to continue working and then to retire approximately when they originally planned to do so.
What about delayed retirement? With the stock market taking several tumbles in 2020, you might expect that many workers over 60 have now delayed their retirement plans. But luckily, that won’t be the case for many. Only 16 percent of older workers say they plan to retire later than originally planned. The market did recover so well by the end of the year that many portfolios were mostly or completely restored.
So, how did the pandemic affect your retirement plan? Were you one of the lucky ones, or do you feel concerned? Contact our office to schedule a talk, and we can help you decide how to proceed next, in light of current events and the state of the market.