Why Right Now Is a Great Time to Plan for Retirement
Despite the pandemic, it’s important to prepare for the future
(Editor’s note: This content is sponsored by Acts Retirement-Life Communities.)
Let’s just get straight to it: the modern world is pretty crazy right now. We’re still in the throes of a major pandemic that’s wreaking havoc with the world’s economy, as people struggle to stay employed and avoid getting sick, and the financial markets reel. This may seem like the worst time to think of anything other than getting through this, much less planning for retirement. Yet in the face of uncertainty is exactly when you should think about your future. Because the world will get through this, and you will still want to enjoy your retirement years.
With all that in mind, let’s discuss some benefits to retiring now.
Social Security Was Never Enough
Today, with the world a highly chaotic place, the bare truth is that the same types of social safety nets that we’ve always relied on simply may not be as reliable as they used to be. Benefits such as Social Security payments for retirees can’t necessarily be relied upon in an era of politicians seeking to cut, curtail or earmark these funds. Meanwhile, other arrangements such as relying on your adult children to help support you during retirement may be also untenable, as newer generations today have fewer resources available to them than ever before.
None of this is news, though for most people. The truth is that Social Security was never enough to retire on, and it never will be. Relying on just your benefit payments may not be sufficient to support a comfortable lifestyle, even after you do things like downsize in order to reduce your expenses. That’s why there’s no time like the present to plan your retirement. Since most retirees need to create additional support structures, it’s important to pave the way for a comfortable retirement for yourself, and that means beginning your planning right now.
Weather the Storm and Come Out the Other Side
Pulling your investments from a lagging market can do two things: it can cut off any possibility that you could recover from a temporary loss in your investment, and it can help drive markets even lower. Often the best course of action if you notice the markets bottoming out is to hang on and ride that wave as the markets recover, as they often bounce back even higher than before. Of course, you should not take this article as complete financial advice, and should consult both your own instincts and a licensed financial planner before making any permanent decisions.
Locking in Rates Now Offers Savings in the Future
Benefiting from the current economic environment goes further than just investment opportunities. While the stock market is in flux, interest rates are at historic lows. This is incredibly beneficial for anyone looking to take out a loan. Locking in low rates now means cost savings later when interest rates go back up once things settle down.
Looked at another way, despite the economic uncertainties, many others will be seeking to take this same advice, and attempt to buy a home while mortgage rates are at historic lows. You could use this opportunity to sell your home and move into a continuing education retirement community, where your living, dining and any further health needs are all baked into a monthly fee. This then frees you from the ebbs and flows of the stock and housing markets.
It's Time to Start Planning for Retirement
Retirement planning is one of those things that you simply have to do if you anticipate having a long, enjoyable retirement. It takes hard work and dedication to prepare financially for your retirement. This can be easy to lose sight of in times when chaos seems to rule the financial markets. Taking action now is almost always better than waiting to see if conditions turn more advantageous. Every little bit helps, and starting early makes it easier to get ahead of the game. Even in the face of setbacks.
For more information on retirement, read these articles by Acts Retirement-Life Communities:
- What is the Average Cost of a Senior Independent Living Community?
- What Do I Need to Retire Comfortably?
- Where are the Most Inexpensive Places to Retire?
Acts Retirement-Life Communities is the largest not-for-profit owner, operator and developer of continuing care retirement communities in the United States. Headquartered in suburban Philadelphia, Acts has a family of 23 retirement communities that serve approximately 8,500 residents and employ 6,200 in Pennsylvania, Delaware, Maryland, North and South Carolina, Georgia, Alabama and Florida. For more information about Acts visit actsretirement.org.
