Baby boomers, who are either in retirement or very close to it, have had COVID-19 make an especially significant impact on their post-work plans. That’s according to a recent survey from the Center for a Secure Retirement and CNO Financial Group. How have Baby Boomers been impacted by COVID? With the coronavirus, Boomers had to help family financially, which meant less for their own retirement. According to Beck & Lenox Estate Planning & Elder Law, LLC, it also delayed boomers from getting important estate planning documents in order, some which affect retirement planning. Baby boomers impacted by COVID need to take a close look at all these areas.
Money Talks News’ recent article entitled “5 Impacts the Pandemic Had on Baby Boomers’ Retirement Plans” provides five important ways the pandemic has changed baby-boomer retirement dreams. The results are based on a survey of more than 2,500 middle-income boomers — defined as Americans who were born between 1946 and 1964, and who have an annual household income between $30,000 and $100,000 and less than $1 million in investable assets.
- Their main ‘non-negotiable’ retirement priorities have changed. Before the pandemic, 56% of boomers said maintaining financial security and independence was their top “non-negotiable” retirement priority. However, it’s now back to the basics for more boomers. The top retirement priorities are now: spending time with grandchildren (43%); maintaining financial stability and independence (35%); staying active (34%); being able to travel (30%); and living close to family and friends (25%).
- They’ve supported other family members financially. Many middle-income boomers reported that they assisted family members financially during the pandemic, with 41% of those surveyed saying that was the case.
- They haven’t been able to save much for retirement. Among middle-income baby boomers who offered cash to support family during the pandemic, 75% say they haven’t been able to save as much for retirement as they wanted.
- They’ve delayed plans to move. Retiring by the beach or near the grandkids are common retirement destinations. However, the pandemic has thwarted those plans for many a baby boomer. Among middle-income baby boomers who helped support family during the pandemic, 65% say that they delayed their moving plans.
- They’ve re-evaluated retirement finances and expenses. Helping the kids in the pandemic has meant an adjustment for many baby boomers’ budgets. About half (51%) responded that they’ve re-evaluated finances and expenses for retirement.
Beck & Lenox’s advice to baby boomers impacted by COVID is to schedule one appointment with their financial advisor, and another one with their estate planning attorney. If COVID now has them worried about future long-term care expenses, boomers should look for an attorney that also has elder law experience.
You do not need to come see Beck & Lenox, but make sure you see an attorney that has the same credentials. At this time in your life, you cannot precious waste time.
Reference: Money Talks News (Aug. 2, 2021) “5 Impacts the Pandemic Had on Baby Boomers’ Retirement Plans”