Major changes in the world and current events always have the potential to impact retirement plans and schedules. Research has started to emerge indicating how some workers were forced into early retirement as a result of the pandemic. At the same time, those already in retirement were not able to enjoy their normal life since travel and time with family were really limited. Concerns over getting COVID 19 impacted people all over the world, but prompted plenty of people to think about how their savings and retirement plans might have to shift as a result.
Others turned to estate planning during these difficult times in order to ensure that their wishes were properly documented for their loved ones. Economic experts have also chimed in that the far-reaching implications of the pandemic will influence different sectors of the workforce in unique ways. That’s called a K-shaped recovery in which some people and industries are able to thrive during difficult times and others will stall out or fold completely.
Prior to the pandemic, the number of Baby Boomers entering retirement was around 2 million per year. However, in the third quarter of 2020, the number of new retirees had already hit 3.2 million. Whether it was the reminder of mortality provided by the pandemic or a forced retirement as a result of changes in the industry, Boomers entering retirement have to think not just about their day to day costs but also the potential impact of healthcare concerns.
Long term care is one of the biggest financial challenges facing those entering retirement. Most people intend to rely on government services like Medicare or Medicaid but might not have a clear understanding of what these programs do and don’t do. Having a clear plan and an existing relationship with an estate planning lawyer can be critical first steps in ensuring that you’ve either created a plan or evolved it due to changing circumstances and goals.