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How COVID-19 Might Impact Your Retirement Plan

As we all know, the coronavirus pandemic has caused everyone to reevaluate their daily routines. The way of life that we used to know when going to the grocery store, visiting family, and even going on vacation has drastically changed, and so have your finances! When thinking about your financial future, it is always beneficial to be proactive and ahead of the game. With the pandemic still in full swing, it may be difficult to think about the future and your retirement. If you would like to learn how COVID-19 has had an effect on your retirement plans, keep reading!

1. Early Withdrawals

If you have been subject to a financial situation leaving you with no other option than to withdraw early from your retirement plans, you have likely heard about the CARES Act. The CARES Act allows for Americans to withdraw from their retirement savings penalty-free. This is called a coronavirus-related distribution. Prior to the pandemic, there was a 10% penalty if you withdrew before 59 ½. While this is a great option for those that absolutely need to get into their savings, it is always recommended to refrain from withdrawing from your retirement savings early. Exploring your options with a financial advisor prior to withdrawing is your best bet in the long run.

2. Retire Later

With the pandemic, millions of Americans have lost their jobs and businesses. The markets fluctuated heavily over the first few months of the pandemic. This has caused many Americans that were close to retiring to have to put their plans on hold. Millions of Americans have been laid off as a result of the COVID-19 pandemic, meaning their retirement savings are either being tapped into or put on hold, as not having a job puts a halt on your retirement contributions.

3. Meet with an Advisor

No matter your financial situation, it is always recommended to meet with a financial advisor. The effects of COVID-19 have taken a toll on everyone, especially financially. Plotkin Financial Advisors is happy to help you navigate the rest of your financial journey during these trying  times. There are numerous benefits to meeting with one of our certified financial planners, such as a comprehensive understanding of your needs for your financial future, as well as determine what is needed to enjoy the fruits of your labor the way you want to.

Your retirement plan might not have been a huge aspect of your life prior to COVID-19, however, it is in your best interest to have your finances evaluated and outline your financial future as you continue to approach retirement. Retirement is something everyone wants to enjoy, so why not be proactive? Give us a call today at (301) 907-9790. Let’s plan – together.

 

Sources:

https://www.igrad.com/articles/how-covid-19-may-impact-your-retirement-savings