Retirement planning is an essential aspect of one’s life, one that often has its best success when implemented earlier on. Although it might seem too early to do so, many recent college graduates are beginning to add to their retirement savings to set themselves up for a worry-free future. However, as COVID-19 raged war on the world, it simultaneously offset many individuals’ retirement plans and set them months back in their financial goals. In the current market, it is essential to understand how the pandemic may have impacted your retirement plans, whether you are well into retirement already or newly out of school.

How Does It Impact Current Retirees?

Current retirees have already built up the necessary wealth and financial stability they planned years in advance. However, this does not mean that the pandemic does not have an effect on them. Given the market conditions and 30-year-high inflation rates, it is imperative that you stick to your budget more than ever and even decide how to scale back some of your finances. The goal of current retirees should be to offset major market changes so that they have as little impact on their funds as possible. Market conditions can be unpredictable, but as many have learned over the course of their lives, intentional money management is the key to financial security.

How Does It Effect Those Hoping to Retire Within the Next Decade?

Perhaps one of the groups hit the hardest by the pandemic, those wishing to retire within the next decade have had to rethink much of their strategy. Between possibly being laid off or having a tremendous hit on their finances, what once looked like it was in close reach now looks like a distant dream for some. However, it is not as far-off as some may believe. Although market conditions have shifted, it has not been drastic enough to push premeditated retirement plans another decade further, but it could extend their employment plans another year or two. 

How Does It Affect Those That Are Far From Retirement?

Lucky for these individuals, they still have a lot of time left in their careers. However, the market conditions imposed by the pandemic go to show how unpredictable life can be. These individuals should take this as a lesson to start planning for retirement early and stay consistent with their retirement goals. Although this group may have found some career or financial setbacks happen as a result of the pandemic, they still have plenty of time ahead to right these wrongs and work with a financial advisor to get back on track.