On Hold

The pandemic has made many people delay retirement plans

It will likely not surprise you that the pandemic has impacted Americans’ retirement plans. In one recent study, adults admitted that the coranvirus has them delaying their golden years by as much as five or more years.

As CNBC reports, the survey of more than 1,200 American adults found that 82 percent had their retirement plans negatively impacted by the pandemic. About 55 percent of respondents claimed they will delay their retirement plans by at least two years. Another 20 percent said they will delay retirement by four years. Finally, about 12 percent of respondents claimed they will delay their golden years by five or more years. On the positive side, the study found that Americans are not giving up, despite the pandemic. About 45 percent of respondents said they were “hopeful and determined” to get their retirement plans back on their previous timetable.

If you’ve pressed pause on your retirement plans, try your best to get back on your pre-pandemic track. Revise your budget so that it’s lean and mean. Use any extra funds for savings contributions. If you have an employer match for a 401(k), make sure you’re depositing as much as possible (max it out if it’s a financially viable option). Make catch-up contributions to your IRA and 401(k) if you’re 50 or older. If you stopped making automatic contributions to your savings accounts, it’s time to set them up again. If you need to start small, that’s fine. Just make a plan to increase your savings rate each month, until you’re stashing between 15 and 20 percent of your income. The pandemic is going to end. Make sure your retirement funds are ready to go when it does.

Chris O'Shea

Chris O'Shea