In the News - Retirement plans on hold or extended

A PwC (a global network of firms) survey of consumers found 56% did not feel financial stress currently, 37 % expect the pandemic to impact their retirement plans. And 15% said they were considering buying life insurance.

In plain English, this shows that roughly half the population is feeling financial stress from Covid-19. In all likelihood, those who work for companies considered essential are not stressed while those who are self-employed or work in industries not considered essential are stressed and even unemployed. The longer the pandemic continues without a true solution to the problem the more likely these numbers will become more negative.

The 37% that expect the pandemic is going to impact their retirement plans are basing their decisions on the decrease in value of their 401ks, TSPs, and other self-directed retirement plans.

To me, the most interesting statistic is that the pandemic is increasing people’s awareness of the need for life insurance to help take care of their family if something happens to the main breadwinner. Though I would have preferred people reviewing their life choices and family history and deciding that life insurance has value on their own, the fact that 15% of the population has been motivated to explore this as an option is encouraging.  For most people, buying life insurance when they are young and healthy comes with a small price tag but a lifetime of value.

There are a number of options for lifetime coverage, such as whole life, universal life, and other more exotic products, even annuities. To explore the options available you would need to talk with a financial planner or insurance agent. This will ensure you get the right product for your situation.

In this article, I hope I have given you some food for thought regarding your own situation.

If you are in the 56% without financial stress Congratulations!

If you are in the 37% thinking I’ll never retire or I’m going to have to work another 10 years before I can retire. Take heart. Just as there was little warning before we entered this global pandemic, there will be little warning that the pandemic is over.  There will be signs, such as fewer new cases of coronavirus being reported, fewer restrictions on where you can go and what you can do.  Use the time now to review your plan and make tweaks where necessary.

Do NOT lose sight of your ultimate goal and do NOT make radical changes to the current plan!

Things will get better as there are massive teams of people working on a vaccine, a cure, as well as ways to slow the spread of the coronavirus.

If all the news is too depressing then STOP watching the news! Remember in order to sell newspapers their motto is ‘If it bleeds it leads’. It is a fact of life if something is not sensational we tend to dismiss it.

So please focus on your plans, your family and do what is right for you. Don’t bury your head in the sand but also don’t lose your head worrying over what-ifs and end of the world scenarios. This too will pass.

I believe in you!