If the coronavirus pandemic has taken a toll on your finances, you may need to rethink your retirement strategy if you’ve lost your job, work part-time, or transitioned to a lower paying job. Here are some tips that may help you prepare for retirement and create a financially secure future in a post-COVID era.
Pay Off Debt
The faster you pay off debt, the easier it’ll be to prepare for retirement and meet your retirement savings goal. Once you have minimal to no debt payments, you can allocate more toward retirement. If you have multiple debts, prioritize the ones with high-interest rates and pay them off first to help save up to thousands of dollars over time.
Don’t Rely on Your Home
While your home is an asset, you shouldn’t count on it to fund your retirement. In the event you need cash during retirement, it may be difficult to access your equity. You don’t want to end up in a situation where you need to sell your home in a down market or wait years for someone to buy it.
Be Proactive with Your Savings Goal
Often, people believe their expenses will go down during retirement, causing them to underestimate how much money they’ll need to save. Be proactive when you prepare for retirement and make a savings goal. Do not overlook costly expenses like your mortgage, property taxes, and healthcare expenses.
Never Give Up
It can be challenging to save for retirement when times get tough. If you’ve been laid off, furloughed, or work fewer hours, don’t give up and consider applying for new higher-paying jobs. By interviewing and networking virtually, you can find a great position with increased income. Remember that there are still many companies hiring despite the pandemic.
Delay Your Retirement
If you originally planned to retire at age 62, you may want to wait a bit longer. Prolonging your retirement by even a year can significantly boost your retirement income. If the pandemic has cost you your job, you may want to find part-time or contract work. This way, you could avoid tapping into your retirement savings and Social Security right away.
Consult Your Financial Professional to Help Prepare for Retirement
Together we can review your retirement goals and help you prepare for retirement for your unique situation. Contact us today to get started.
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