How The Pandemic Has Impacted Retirement Plans
The coronavirus pandemic has thrown a curveball into everyone’s lives. Fidelity Investment’s 2021 State of Retirement Planning Study collected information from 1,204 of adult financial decision-makers on how the pandemic has impacted their retirement plans.
82% of Americans say the events of the past year have negatively impacted their retirement plans.
55% Say their retirement goals have been delayed at least two years.
33% Believe it will take at least 2-3 years to get back on track. Key factors being job loss or being forced to take retirement withdrawals.
79% Indicated they have re-evaluated their priorities in the past year.
While this year has brought a whirlwind of emotions, it is important to remember that despite the uncertainty in the world, the fundamentals of retirement remain sound. Although 36% of Americans are now more concerned than at the start of the pandemic on their ability to maintain a nest egg in retirement, Fidelity witnessed retirement savings accounts reach record levels in the fourth quarter of 2020.
When it comes to planning, 33% say they have a plan in place to achieve their goals, 31% say they have thought about retirement in great detail, and 34% say they have thought about it but have not started planning. Across the board, those with the most detailed plans in place to achieve their financial goals feel the greatest levels of confidence surrounding retirement.
Millennials are more likely to report having a plan to afford their desired lifestyle in retirement (35%), compared to Gen Xers (34%), and Boomers (32%). This statistic may be attributed to the fact that millennials have had access to countless digital planning tools throughout their retirement planning in comparison with their older counterparts.
Creating a plan can lead to a greater sense of confidence and control. This will allow individuals to feel secure about their plan and future at any age.