The COVID- 19 pandemic has made a significant impact on many aspects of our daily lives.For one thing, it has made Americansincreasingly worried about retirement.In fact, according to the September 2020SimplyWise Retirement ConfidenceIndex, 58% of Americans are more concerned about retirement than they werea year ago.
SimplyWise also found that Americans
closest to retirement are among those
most concerned about their outcomes —
with 58% of Americans in their 50s lack-
ing confidence that they will be able to
maintain their quality of life in retire-
ment. Furthermore, according to the
report, 30% of Americans in their 50s
saved nothing for retirement during the
last year, and 43% of them wouldn’t be
able to stay afloat financially for more
than a month using their savings.
This is understandable in light of thedisruption, uncertainty, and an over10% unemployment rate in the wake ofCOVID- 19. The study found that 15% ofAmericans who lost their jobs as a resultof the pandemic are now planning toretire earlier — and that one out of 10
Americans in their 50s and 60s now plan
to retire earlier than they expected.
With only 63% of those surveyed
earning the same income as they were
prior to COVID- 19, many Americans
also are planning to postpone com-
plete retirement for as long as possible.
Simply Wise reports that 73% of workers
intend to work after they begin claiming
Social Security, and 29% of Americans in
their 50s intend to postpone retirement
due to present economic conditions.
Worries about expenses and Social
Security also have compounded
Americans’ uneasiness about retirement.
A whopping 63% of Americans who
were let go or furloughed due to COVID-
19 are unable to come up with $500 in
cash today, and the survey found that
36% of Americans believe the economy
will worsen over the next six months.
Meanwhile, 13% of Social Securitybeneficiaries are now thinking aboutselling their homes to cover expenses,and another 14% may refinance theirhomes to meet current expenses.
The Social Security Board of Trusteesannounced this year that the program’s funds will be totally gone by2035, and SimplyWise found that 86%of Americans are worried that deferring payroll taxes — such as decreed bythe executive memorandum signed byPresident Trump in August — will harmSocial Security over the long term.
In a similar survey Simply Wise did inJuly 2020, 47% of respondents expressedconcern about being able to pay medicalbills in retirement (and 39% stated theywere worried about their ability to payliving expenses during retirement).
Advisors today have an opportunity tohelp alleviate these retirement concerns
COVID- 19 and Growing
Advisors can utilize software today to help worriedclients adapt plans accordingly.
RETIREMENT PLANNINGBy Angela Pecoraro