How COVID-19 Could Impact Your Retirement…and What You Can Do About It Now
While retirement has been a key area of concern from the beginning of the COVID-19 crisis, the pandemic's impact on retirement planning is becoming clearer.
Fortunately, the effects appear to be manageable with the right financial planning and counseling. Throughout the financial sector, there is a keen awareness that the market may remain volatile. Still, this volatility will come as no surprise, and we’re reminded it’s a prime catalyst for long-term growth. Eventually, the volatility will subside, justifying continued retirement savings during and after this time.
First and foremost, remain calm in these times of change. Stress and anxiety can lead to impulsive decision-making that can dismantle the financial foundation you've built and derail the goals you've worked toward. We know that COVID-19 is going to pass, and the markets will rebound and fully stabilize. Remain focused on the coming years. Now is the time to think long-term and stay the course we've set together.
Today, an essential factor to consider is the financing and benefits available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Primarily, the deadline for IRA contributions has also been extended to coincide with July 15th federal tax filing deadline. Taxpayers still have time to continue to contribute to their 2019 retirement savings. We also recommend increasing your contributions, if possible, to your 2019 retirement funds to maximize the benefits of this deadline extension.
If you are in a position to increase your contributions, you should. If you aren’t, continue contributing to your retirement funds to ensure the long-term security of your future. If your financial situation has changed, let's talk about adjustments that make the most sense or what additional options might exist before ceasing retirement contributions.
As the market stabilizes, remember that some facets of your retirement may rebound at different speeds. As you adjust your retirement plans, consider how the world has evolved in technology and industry, international cooperation, government aid, and tax relief. We'll be sure to inform you of how these considerations will to impact your retirement moving forward.
If you have any questions or concerns regarding how COVID-19 may impact your retirement, please let us know. We are here for you to put our experience and financial knowledge to work in the ways that will help you reach your future goals on your terms. Please email us or call either our Aspinwall office at 412-781-7100 or Greensburg office at 724-836-7001 to be directed to a member of our team.