COVID-19 has turned the world upside down in a matter of weeks and we are all feeling the effects. Those nearing retirement, in particular, are feeling the effects of the economic downturn any many retirement plans have been paused. These uncertain times bring into question whether now really is the right time to retire.
Are you emotionally ready to go ahead with your retirement plans?
Ideally, when you retire you are retiring to enjoy a new lifestyle. This might be a lifestyle that involves travelling or spending more time with family. With COVID-19 restrictions expected to continue for the foreseeable future, baby boomers are questioning whether now really is the time to transition into retirement. Retirement is not only a financial decision but also an emotional one. The recent health crisis has proven to have negative impacts on mental and emotional health. If you are thinking about retiring soon and can still afford it, you should also think about what you want your new life to look like. You might need to adjust in the short term so that can live your ideal retirement lifestyle after COVID-19.
Are you financially ready to retire?
The global health crisis has caused many Australians to question their financial position. This includes whether they need to make any adjustments to their retirement plan. The economic crisis has caused a significant drop in the value of superannuation, shares and businesses. This has prompted many Australians to question whether they can afford to retire in the current economic environment. There is no right answer and it really does depend on each individual case. If you are concerned about how COVID-19 will affect your financial plan, seek advice from a financial planner who will be able to guide you in the right direction.
This is an uncertain time for all and it is normal to feel worried about what the future holds for your retirement plans, emotionally and financially. If you are concerned, the APS Financial Planning team is here to support you. To get in touch, email Sharron, Paul or Tim at firstname.lastname@example.org or call us on 1300 131 809 if you’d like help with your finances during this time.