Top 5 Ways to Lessen the Impact of COVID-19 on Your Retirement Plans

 


Put health issues aside, the Covid-19 has ruined the financial plans of many, probably you too. And if you don’t take it seriously now, you could risk your retirement plans irretrievably. Here’s a 5-point plan to lessen the impact of COVID-19 on your retirement plans.

Reduce your expenses wherever possible:

Trim your expenses wherever feasible, especially if you’re facing a job loss or salary deduction. The lockdown is a blessing in disguise as it allows us to easily cut back on eating out, shopping, travel and daily commute. You must use this time smartly to reduce unwanted expenses. The more you save today the better your chances of building a healthy retirement corpus.

Reassess your retirement goals:

If you’re an early jobber, you may quickly recuperate from the setback of Covid-19. However, if you’re in the middle of your career or not far from your retirement age, you’ve to reassess your retirement goal. Relying upon how many years you have to your retirement, you may either need to scale down your retirement corpus goal or - and this may be the more practical choice – postpone your retirement by a few years in order to attain the anticipated corpus.

Add more income sources:

Accept that your pre-Covid finance planning strategy may not serve you well post-Covid. This piece of advice is especially relevant if your income has dropped during the lockdown.

So, you have to find ways to restore your income to pre-Covid levels. You & your spouse may wish to consider incorporating new income channels by trying to monetize your skills and hobbies. This will surely help you get back on track as far as your retirement plan is concerned.

Steer clear of making panic-based decisions:

While this is definitely a terrifying time, don’t make financial decisions when you’re in panic mode. This may force you to make illogical decisions that can cause long-term consequences, such as pulling out money from your retirement account that you don’t replace, or making other decisions that can affect your retirement plan in a negative way.


Speak to a financial planner:

If you’re concerned about how COVID-19 may impact your retirement savings or you want info on how to reduce the impact of the virus on your retirement savings, feel free to speak to a financial planner. They can scrutinise your exact situation and give recommendations specific to you.
 

Disclaimer: The information in this commentary is for informational purposes only and not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product. ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI

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