As per Brad Furges, even before the COVID-19 pandemic, the tradition of retiring at 65 was changing. Now, it looks as though it could disappear altogether. According to an Allianz Life Insurance Company survey, around half of Americans retired earlier than expected. While one-third blamed job losses, others had healthcare issues that caused them to leave the working world behind.
With the current global environment, it’s fair to say that people are worried about the future. With unemployment high and uncertainty filling the air, it’s impossible to predict how the economy will recover and whether previous roles will return.
According to Brad Furges, for the longest time, 65 was the magical age because of Medicare and Social Security benefits. Depending on the birth year, the latter now becomes available at 66 or 67. Despite this, many surveys show that there’s confusion surrounding retirement and that many still believe they’re eligible at 65. This being said, one study from the Transamerica Center for Retirement Studies showed over half of the participants plan to never retire or continue past 65.
Therefore, COVID-19 pandemic could lead to one of two outcomes:
• Working longer to catch up
• Retiring earlier
1. Early Retirement
On the one hand, older individuals may not have the opportunities to succeed in their careers once the virus fades away. With millions of people looking for work, some will struggle for opportunities. In the United States, this could lead to an influx of 62-year-olds claiming Social Security. Of course, this causes permanently reduced benefits and a lower income than initially planned.
2. Late Retirement
For those who do get opportunities, there will be a need to replenish the funds lost during the pandemic. Again, there’s a whole host of questions, and older workers especially may face difficult times. Even if you can find work, there’s a question of whether wages will be lower than before because of the competition for each position.
According to some experts, it will be a decade before we fully understand the impact of the pandemic. Either way, financial experts around the country are pushing one key theme; the idea that financial planning is the key to surviving turbulent times. The more you plan, the more likely you are to have the capacity to deal with stressful situations.
If you were born 64 years ago, you have no control over what’s happening today. Therefore, the best way to deal with unforeseen downturns is to be sensible with finances and save for retirement early.
Even before the COVID-19 pandemic, the tradition of retiring at 65 was changing. Now, it looks as though it could disappear altogether. According to an Allianz Life Insurance Company survey, around half of Americans retired earlier than expected. While one-third blamed job losses, others had healthcare issues that caused them to leave the working world behind.
With the current global environment, it’s fair to say that people are worried about the future. With unemployment high and uncertainty filling the air, it’s impossible to predict how the economy will recover and whether previous roles will return.
