Has COVID Forced You To Put Your Savings and Retirement Plans on Hold?
COVID-19 has had an impact on our daily lives. It has affected us all differently. The effect of COVID-19 has been more intensely felt by those saving or planning for retirement. The pandemic has forced many to unfortunately put their retirement plans on hold.
Worse, others have been forced to put their entire savings plans on hold, even dipping into savings to make ends meet. The money has been redirected towards new uses, and the timeline for retirement and plans for saving have changed financial goals for many.
To adapt to the global pandemic’s financial impact, many have stopped saving for long-term goals such as retirement. Instead, the finances are being channeled to making renovations on the assets that are already in existence.
Has COVID forced you to stop saving to survive the effect and destruction that has been left in its wake? If so, you are not alone. Many of us had our minds on more significant financial and savings goals but have been unable due to the pandemic.
Retirement Plans have been Put Off Course
The timelines as to when we will be retiring or how much we will be saving has significantly shifted for many by forcing them to spend on more immediate needs. Saving has gotten more difficult in the pandemic as people have been forced to bear more expenses, with in many cases smaller revenues. COVID has forced many that were nearing retirement to put their retirement plans on hold…making financial adjustments has become the necessity.
Importance of Investing
One approach of how COVID has forced you to put your retirement plans on hold is by reducing your wealth’s long-term trajectory. The risk can be countered by investing some of your retirement funds. Your savings account could be managed better when you reduce the number of unnecessary expenses. Cutting down on low-value spending can help savings.
Depending on your situation, your asset allocation could also be rebalanced in light of the current market conditions. You could buy up more stock and sell bonds. As such, you would be in a position to grow your portfolio more quickly as the market recovers. Remember, you are not the only one that the pandemic has impacted, and making wise decisions is useful. A financial advisor is beneficial for such moments as they will make your strategic planning and implementation a lot more effective.
Many people have had a significant change in their lifestyles with the realization that they need less money. Working from home has become a more attractive alternative for many as it is less stressful than an office. Retirement plans have never been solidly set out and were always based on assumptions. Assessing how much you need ensures that you know how much to save and how far you should cut back. You can also make better adjustments when you see the retirement plan you need.
Quick cash injections for your family have become a necessity that can be better handled with additional jobs. Freelancing has been one of the most lucrative options and can be done from home. It is both convenient and comfortable with the very minimum investment required upfront.
Has COVID forced you to put your savings and retirement plans on hold? You are not the only one to have had to make changes as a result of the pandemic. People from all over the world are being forced to change their long-term investment approach. The change is all due to the financial implications of COVID. With the tips provided, you will be able to make useful adjustments to your plans. These will keep you on the correct savings and investment trajectory to ensure that you achieve your goals. It will also make your savings plan get back on track more quickly.
Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.