A whopping eight out of 10 individuals planning for retirement say the pandemic and the economic fallout put a large cloud over their plans, according to a new study.
A third of the respondents predicted that it would take up to three years to regain their financial footing and get their retirement moving in the right direction again.
Job loss and unplanned retirement withdrawals are two main reasons why a large number of retirees fell behind last year.
Fidelity conducted the 2021 retirement planning survey and also found findings about the positive impacts an actual retirement plan has. With the pandemic soon in the rear view mirror, many retirees feel more optimistic than ever about their financial foundation moving forward. In large part, retirees credit savvy financial planning for weathering the storm.
Yet, with some uncertainty still in the air, retirees are also cautious and open to new ideas on how to prioritize and make the most out of their financial plan. Even taking the simple steps of visualizing the numbers has proven to be an effective tool for retirees, both psychologically and practically. Getting a sense for how things are going gives retirees a sense of control through clear financial tracking.
The survey also explored how prepared people are right now for retirement. About a third said they had some work to do, another third feels extremely confident about the road ahead while the remaining individuals admit to not having a plan at all.
Respondents were also asked about how much money they think they should have saved by the time they retire. Only 25% answered correctly. If you’re nearing retirement age, you should have saved 12 times of whatever you’ve earned in the last year of working full time.
As you get over the speed bumps and rebuild your financial plan, it’s important to explore all opportunities.
To meet the complexity of retirement, remember that you have a powerful asset in your financial toolkit as a homeowner. A home equity conversion mortgage can help you make up for some lost ground and boost your savings. This is easy to do.
If you are over the age of 62, then you have a financial resource that allows you to eliminate monthly mortgage payments through a home equity conversion mortgage. This will enhance your retirement income without having to move or sell.
Please contact us to learn more about how you can better navigate today’s financial realities as you plan for a retirement without limitations.
*(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 repayment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.