How The Pandemic Can Affect Your Retirement? 

The COVID-19 pandemic has rippled through every aspect of our lives. This includes affecting the retirement plans of millions around the world. While you might think that this is only relevant to those nearing, or already at, retirement, think again… Research has shown that as many as two-thirds of us are affected.

The following discusses the key findings and, very importantly, what you should do if you think you’re one of those affected.

The Effects of the Pandemic 

• Current wealth, potential earnings, and retirement expectations
• Not just the over-50s

Current wealth, potential earnings, and retirement expectations

Many of us have felt the immediate effects of the pandemic. Lockdown prevented many of us from securing our usual income, meaning we had to dip into savings and liquidize assets to survive. 

Nowhere has this been more evident than for those aged over 50. In fact, research from the English Longitudinal Study of Aging COVID-19 Sub Study shows that over 50% of people reported a lower income in late 2020 compared to pre-pandemic. The result of this is that many drew on their assets (savings, retirement funds, etc.) to weather the storm.

Another knock-on effect is that of future retirement income. For many, their best-laid plans were scuppered because they had to rely on funds that were building for their golden years. Around a third of people who took part in the above-mentioned study expected their retirement to be directly affected.

This may result in several things:

• Having to work longer before taking retirement to restock the funds spent
• Retiring as expected but with a lower income
• Being unable to financially support family as expected

Not just the over-50s

While this is going to affect those in the run-up to retirement in the present, it also means those earlier into their career also have to consider the consequences. While they have more years in which to make up for any shortfall suffered during the pandemic (and for the vast majority this is wholly achievable), other aspects also come into play.

One is that their parents might be less able to support them in key financial milestones. This could include being unable to help pay for further education or with a deposit for a mortgage. The ongoing effect of this is that younger people might have to borrow more or end up with higher debt than they would have pre-pandemic. This, of course, will affect their own retirement planning, as they’ll have less liquid capital to put aside at an earlier age. They might also inherit less as their parents have less to pass on.

The Pandemic isn’t Done with Us Yet 

• The continuing financial challenges for the US workforce and retirees

The continuing financial challenges for the US workforce and retirees

While it may seem that we’re coming out of the other side of the pandemic, nothing is certain at the moment. Various countries around the world are experiencing a resurgence of the virus, with lockdowns once again rearing their ugly head. While these are happening on faraway shores, the global landscape of the world’s economy means that such incidents have a direct impact in the US as well. If imports and exports take a hit, so too do the earning opportunities on home soil. Plus it also impacts the price we pay for goods, oil, power, etc.

These uncertain times make it all the more vital for us all to overview our finances at the earliest opportunity. It’s never too early (or late) to think about the future. In today’s volatile world, a few key strategies today can make a huge difference to our future financial health.

Act Now for a Richer Future: Contact Capita Today

By far the best way to ensure your wealth opportunities is to take professional advice. At Capital, our expert advisors are already helping millions of people around the world take control of their post-pandemic finances, ensuring damage limitation and driving new investment and money management strategies.

While the pandemic is a new situation for everyone alive today, financial catastrophes certainly aren’t. This is why the savvy American knows that to truly enjoy a worry-free retirement, this is best achieved with professional help. 

Head to https://www.capitafinancialnetwork.com/services/investing to find out more and call today to book a no-obligation consultation.