The COVID-19 pandemic is likely to have a lasting impact on our lives, from how we fly to how we retire. During times of crisis, priorities often shift, and the need for a plan in the case of emergency becomes apparent. There are many ways our lives might adapt to a different world after the pandemic, especially for retirees. Here are three emerging retirement trends in the post-coronavirus world.
More People Will Be “Pulled” into Retirement Than “Pushed”
Older workers can sometimes find themselves “pushed” out of the workforce sooner than they anticipated by layoffs and age discrimination. However, it may be that more people voluntarily enter retirement earlier to spend more time with friends and family and to travel while they’re still young. Putting off retirement goals even longer may not appeal to those who have lived through the coronavirus crisis and had to cancel trips and gatherings. A financial plan is especially important for those who want to retire early and pursue their desired retirement lifestyle.
Aging At Home Could Become More Popular
Many will remember the spread of coronavirus through nursing homes for years to come. Visitor bans and lockdowns don’t sound appealing, and the idea that nursing homes are dangerous places could stick around. One survey found that the majority of Baby Boomers want to age in place “where their marriage and mortgage and memories are.” This isn’t a new trend: In 1992, 53% of Americans stayed in the house they owned at 50 for the rest of their lives. New technologies to facilitate mobility and make connecting with loved ones remotely could make it easier to age at home.
Planning Will be Key for Retirees
After the end of the longest bull market, many Americans preparing for and in retirement may have realized how important a financial plan is. Anyone can assess their risk tolerance and create an investment strategy before market drops. They can also choose to have someone in their corner to help with a long-term plan and handle bumps along the way. A financial advisor can help you create an investment plan, as well as a Social Security maximization strategy, estate plan, and tax minimization plan.
Everyone has an ideal retirement and retirement start date, which is why it’s important to have a plan based on your unique financial situation and goals for the road ahead. We can help you figure out how you can finance your desired retirement lifestyle by building a comprehensive retirement strategy. To sit down with us and start the discussion, sign up for a complimentary review.