Pandemic changed retirement plans in two opposite ways, studies find

Local financial planner shares trend details and advise
Two opposite trends emerged as a result of the COVID-19 pandemic.
Two opposite trends emerged as a result of the COVID-19 pandemic.(KKTV)
Published: Jul. 22, 2021 at 5:58 AM MDT
Email This Link
Share on Pinterest
Share on LinkedIn

COLORADO SPRINGS, Colo. (KKTV) - If your retirement plans changed since the pandemic hit, you’re not alone.

“We heard a lot from clients just worried about what’s going to happen,” said financial planner Nathan Archuleta with Summit Wealth Group in Colorado Springs. “The speed at which it happened was very unique. It was a situation where you woke up and you hear on the news every day that the markets are going down and that the world is falling apart, and we just don’t know what’s going to happen.”

A retirement living study found about half of Americans are reassessing their plans to retire. The interesting part is: Many experts and research studies find two opposite trends.

“Things like job layoffs, furloughs, or people just being forced out of jobs before they expected they’d be able to retire has caused them to really just sit down and take a good look at things again,” Archuleta said.

According to Edward Jones Investments, one in three Americans were forced into early retirement for this reason.

An additional worry for folks in this boat is needing to count on the economy that was hurt by the pandemic, Archuletta added.

“The first couple of years that you retire, some bad years of investment performance can really affect the rest of your life and the ability to spend and really accomplish all of your goals.”

On the other hand, according to Bureau of Labor statistics, more than half of Americans had to delay the milestone in order to eventually afford it post-pandemic.

When asked what people can do in this situation, Archuleta said, “supplement with some part-time income, or just consider another year or two of delayment, and that will really add some contentment to all of that financial situation and financial picture.”

Copyright 2021 KKTV. All rights reserved.