How the Corona Virus Affected your Retirement Plans – Road to Retirement
No matter where you are on your retirement plan, things have definitely changed due to the corona virus. If you’re young and just beginning to start saving, you might have needed to dip into your savings to deal with the economic impact, if you’re older maybe your plan didn’t account for such a dramatic increase in the cost of living, and if you’re about to retire, maybe you’re worried about your health and safety as the virus continues to affect people worldwide.
Savings and Investing
The ongoing economic shift and increase in cost of living has had an impact on how 401k(s), IRAs, and Pensions. Many robo-investment groups appropriately scaled back investments when the market began to turn, meaning your money is most likely stable, but won’t offer as amazing returns as it did during the past 7 years of relative economic growth. This might mean that your current savings plan won’t hit the same projected outcome if you used an investment calculator.
Many investors and professionals suggest that the impact on investing will be minimal as there tends to be a period of growth soon after a period of decay. But that means if you plan on retiring soon you might not have had as big of a growth period near the finish line as you planned to.
So what should you do? Check out investment calculators and see if you need to either adjust how much you’re saving or what your goals are. If you’re nearing retirement age, you might want to take stock of your assets now to just double check that things are going well.
We highly recommend using a financial planner or advisor at any stage during the retirement process, especially now!
Travel
There was a huge increase in the number of RVs purchased over the past 3 years. If your goal was to travel during retirement you certainly won’t be alone. But the recent travel restrictions have caused a lot of unease when it comes to international travel. Right now, things are pretty safe so long as you’re vaccinated and boosted. But you never know when a sudden surge might leave you rushing to get back to the US. For all of this we highly recommend you check the news and the CDC before you make any travel plans. You might have to just leave your destination out of your retirement plan.
Additionally, there are warnings that this pandemic won’t be the only one that hits in your lifetime. Hopefully this one prepared you for a time of staying in, should that be what’s called for.
So what should you do? If traveling is your passion, you need to keep an open mind. You might not want to sign up for cruises if another health threat is looming on the horizon. But solo or family travel is always a great option.
There is no guarantee that you’ll be able to go anywhere you want. Check the news and talk with your doctor before travelling. Also, be sure you’re staying up to date on your shots, vaccines, and immunities.
Health Insurance and Healthcare
Luckily, it seems like the effects the pandemic had on health insurance were minimal. But the effects on healthcare have been massive. Huge changes have occurred at hospitals and doctors nationwide. Getting appointments with specialists is harder than ever due to an increasing backlog of patients.
Healthcare experts suggest this should calm down over the coming years. They also suggest that the lessons healthcare professionals learned from the pandemic were massive, meaning we should be better prepared if something were to happen. For the most part, healthcare providers will be more careful going forward, which is good overall, but might mean you can’t be as flexible with finding care.
When it comes to insurance on the other hand, many experts state that Medicare saw a huge jump in the number of applicants in the past two years. The pandemic pushed a lot of people to an early retirement. That means you could see rates go up. But, its not likely. To protect yourself, you should consider getting Medicare part C, rather than traditional Medicare. These rates tend to be more stable, especially when they’re negotiated by a group. These plans are available to SDPEBA members through the City and through us. So you should be covered when you decide to retire.
So what should you do? Make sure you’re taking care of yourself! Exercise, eat healthy, and get your annual checkups! These are the biggest ways to keep healthcare costs down so that retirement can be more affordable.