New Survey Shows How The Pandemic Changed The Way People Think About Retirement
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The pandemic completely changed the way people view the world but did the global crisis change the way people think about retirement?
According to a Personal Capital and Kiplinger’s Personal Finance poll, the COVID-19 pandemic and its economic impacts have changed the mindsets — though not necessarily the plans — for most retirees these days.
For many, retirees fear inflation more than the rising cost of healthcare, according to the survey.
More than 3-in-4 (77%) retirees and near-retirees cite declining purchasing power as a major concern, and that’s greater than the share concerned about the cost of healthcare (74%).
“Retirees and near-retirees who are worried about looming inflationary pressures can stay focused on their overall investment strategy,” said Jay Shah, President of Personal Capital. “It’s wise to avoid letting current events drive long-term decision making.”
Here are respondent’s top five financial concerns for the future:
- Rising inflation (77%)
- Cost of health care (74%)
- Financial strength of Social Security (71%)
- Financial strength of Medicare (67%)
- A recession in the next year or two (62%)
“Having a plan that’s designed to endure varying conditions leading up to and during retirement is the key to increasing your financial confidence at any stage,” Shah said.
More key findings:
– Just over half (58%) say that the pandemic hasn’t changed their current or planned standard of living after retiring.
– 3 in 4 retirees (75%) say that, despite the pandemic, they are confident that they will have enough income to live comfortably throughout retirement.
– Most retirement-age investors are staying the course. A majority (63%) say their investment outlook has not changed since the beginning of the pandemic.
Saving More Money Now
For some people, the pandemic meant dipping into savings that already didn’t have enough money for retirement. Of the people polled for this survey, 33% – about 1/3 of respondents – say the pandemic “has convinced them that they will need a bigger nest egg for retirement,” and more than 41% have already started saving more money for retirement.
Nearly one-quarter (24%) have decided to delay their retirement date, and a similar percentage said they plan to now work part-time in retirement.
Head over to Personal Capital to read the entire survey.