At present there is a panic situation among the about to retirees about what would be the impact of COVID 19 on retirement. The impact of COVID 19 has entered into every aspect of life across the world. The entire world has been in panic mode since the outbreak of coronavirus. This has resulted in causing unprecedented market volatility. There has been a quick comparison made to the credit crisis in 2008, which lasted five long years. It is more closely a mirror of the events that followed soon after the September 11, 2001attack on the US. Thereafter, there was a sharp drop in the economy that recovered unexpectedly quickly.
Financial damage by the COVID 19
COVID 19 has done large financial damage that reflects on retirement. The retirement plans you have and how you react to it are discussed. The sudden collision of the world’s economy has affected many people who were on the verge of retirement. With so much uncertainty around the economy and stock market retirees are afraid they have not saved enough and are panicking, which is a legitimate concern. People who have worked for more than 25 years in their respective professions are reflecting on the potential damage done to their retirement savings by the drastic decline in the market.
This affects the more experienced lot as well as the less experienced individual. COVID-19 has seriously delayed the retirement plans of many people. The rookies may find it quite impossible to fill in the places. The coronavirus crisis and how long it will last is uncertain. Depending on the duration of this severe health crisis prolongs, you should not view it as an interruption on your retirement plans. You just look at what will happen when everything is over and your investment contribution to your retirement savings after the crisis is over.
World Health Emergency (COVID 19)
We expect a turnaround of the current economic scenario due to COVID 19. As this worldwide health emergency is mitigated through a vaccine or treatment. However, it is still important to have a concrete retirement plan to protect your financial future. COVID-19 has caused immense economic damage as the virus may take longer to resolve. The coronavirus has caused drastic changes to daily routines.
An opportunity to invest
A market plunge could delay your retirement depending on how long the after-effects of COVID 19 will last. It is too early to say what the outcome of this dramatic happening and long it will go on. However, looking at the future it is better to go ahead than to stall your retirement investment plans. For example, if you plan to retire more than 10 years from now, view this current scenario as an opportunity. Let not the coronavirus put a nail on your retirement investment. This means making regular payments to your retirement accounts.
Here, there is a lesson to be learned from this current crisis (COVID 19). Taking in the view of the impact of coronavirus, you should start taking your retirement plan investments seriously. It is irrespective of your age-whether your 30, 45 or 65. Moreover, this will enable you to withstand the next financial crisis. COVID 19 should help you prepare for such health emergencies that arise due to an attack never seen before due to the devastation being caused by the coronavirus.