The pandemic’s toll on public health and the nation’s finances continues to mount up.
As economic uncertainty continues, people are raising questions about what’s in store for their retirement while some retirees are already making adjustments to their planning.
A new study reveals that nearly 40 percent of all workers will change their retirement planning.
See the other ways the pandemic is directly changing life for millions of retirees.
Pre-pandemic, many working adults were off track with retirement savings.
Unfortunately, the pandemic has been stressful for those planning for the long-term.
Generally, workers near retirement age are less confident about their financial course and projected savings, the study found. For 20 million Americans, the pain is real. They can no longer make regular retirement contributions due to the recent health and economic upheaval.
About a quarter of all Americans say the pandemic is to blame for reductions to their savings. A third of Gen Z and Millennials describe the pandemic as extremely harsh on their financial security.
People already in retirement say they are financially secure since their incomes are not based on employment, the study found.
A large portion of people nearing big decisions on retirement now plan to postpone by an average of three years.
As individuals dip into their savings and lose ground on their retirement funds, they are left with very little choice but to prolong their employment.
About a tenth of the working population is retiring earlier. They are fearful of being exposed to the virus by continuing to work. They are willing to take a financial ding to spend more time at home or with family and friends.
Postpone and work through retirement
The average age of retirement has risen to 62, the highest it’s been in 50 years. Full retirement age for Social Security benefits has followed.
People are living longer.
All these factors compel Americans to stay on the job longer. Cushioning retirement savings and postponing Social Security withdrawals for a larger payday down the road are two favorable outcomes.
Part-time work after retirement fits many lifestyles, as well.
The labor force participation of people over the age of 65 has gone up to 20 percent, a level that hasn’t been seen for 50 years. This group is also the fastest-growing segment of workers.
Retirees who stay at work are doing so for extra income and to say mentally active and engaged with others.
Staying connected with others during a pandemic is a valid purpose for extending employment beyond retirement age. We also know we can learn a lot from a range of experience, perspective and problem-solving abilities within a diverse workplace.
As more Americans find new ways to increase their income and boost their savings, they may also turn to a Home Equity Conversion Mortgage to leverage their equity and gain financial flexibility.
As a borrower, retirees will no longer make monthly payments as long as they live within the home. They will still be entitled to sell the home or pass remaining equity on to heirs.
Please contact us today to learn more about this opportunity to enjoy the new freedoms of retirement life without any compromise, delay or inconvenience of adding a new job.
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.