How the Coronavirus Pandemic is Impacting Retirement Choices
President/CEO at Healthcare Solutions Direct, LLC, a nationwide insurance agency focused primarily on the retiree health market.
Settling into another month where COVID-19 is still a top story, it is time to look at the long-term impact that this pandemic is having on our country. When it comes to the senior community, an unforeseen effect of coronavirus has been on retirement.
According to Benefits Pro, confidence in retiring is changing. Recently collected data from a survey conducted by the Transamerica Center for Retirement Studies says about one quarter of women feel less confident about retiring comfortably. This is specifically because of the pandemic. For men, that percentage is at twenty. Most people hover in the middle and still have doubt about how coronavirus and retirement are linked but only 17 percent of women, and 30 percent of men think they can retire comfortably today.
Connecting coronavirus and financial instability
It is no secret that many families face financial instability as a result of COVID-19. Jobs have been lost or are precariously held onto as the economy shifts in ways we could not predict. As a result, savings start to change, and looking ahead to funding retirement becomes shakier. Retirement is, “something people spend their entire careers planning for, but the impact of the coronavirus on the economy has made these decisions much more stressful,” says Patrick Nelson of KOAA News 5 in Colorado.
Cushioning the financial strain
For many, including those nearing retirement, 2020 has forced a change in how we save money. Those who suddenly found themselves without jobs have dipped into their emergency funds to stay afloat. People have pulled from their 401Ks, IRAs, or have stopped putting money away all together. The ripple effect of depleting savings now can hurt you in the future when you really need to depend on retirement funds to live.
Even with the financial strain of today, it is good to not lose focus on tomorrow. Here are some tips to help maintain your financial situation as best as possible:
· Keep paying into your 401K as long as you are working. Do not feel tempted to take that off the table to pad your savings.
· Continue paying down debt you have already accrued, even if payments are smaller.
· Consult a financial advisor and get support on how to keep boosting savings without making significant sacrifices to your daily life. Make sure to share what key areas you know are coming up in the future where you will want to make a sizable contribution like a wedding or the birth of a grandchild.
· Reflect on your comfort level for risk to make informed financial decisions. Do not let the panic of the unknown influence you to act impulsively with your money
Postponing retirement and your health
Most of the factors that influence when to retire are either financial or something related to health. Today, the stress of needing to find work, or holding onto a job at an advanced age, is high.
Too much stress puts our bodies at risk for multiple complications, but even during a time of prolonged stress, there are ways to manage it.
· Talk it out — discuss what is worrying you with a partner, friend, or even a professional. Do not ever feel like you have to experience the tough moments alone.
· See a doctor — stress can have a physical impact such as raising your blood pressure. If you are feeling off, get checked out, even if it is a Telehealth visit.
· Take care of yourself — do your best to eat a healthy diet and make time for exercise.
· Spend time with friends — give yourself a break from thinking about the tough topics, like retirement and finances; visit friends and just enjoy spending time together.
Postponing retirement or deciding when it is a good time to retire, can lead to a lot of tense moments. As you figure out whether you need to work or not, it is always a good idea to take a step back to properly care for yourself.
Proper care with proper coverage
Having the right Medicare plan can help decrease your financial obligations, while also giving you the right coverage for your particular health needs. You pay less for a plan that supports your well-being, when done right. A Medicare insurance agent can help you find the best policy, with the right coverage and price. This can take a huge stress for you off the table, because you do not have to deal with the confusing plans offered through Medicare yourself.
At Healthcare Solutions Direct, our knowledge and expertise mean we put your best interests first and foremost when it comes to healthcare. This includes coverage for mental well-being as well as physical health. From doctor’s visits, to consults with specialists, to a prescription plan, we can ensure you have the proper coverage for your personal needs. Contact us today to learn more.
Contact Healthcare Solutions Direct to understand your options
Finding the right Medicare plan for your personal needs is essential to maintaining both physical and mental health in an affordable way. While getting the right coverage is important, finding the balance between care and cost is too. Let the insurance experts at Healthcare Solutions Direct help you navigate your Medicare plan options. We represent the major Medicare carriers in the US, allowing us to pinpoint the best choice for you. After pairing you with the right plan, we walk you through the entire process, supporting you the entire way. To learn more, contact us today.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.