After almost two years, the pandemic has brought major life changes clouding the path to a stable retirement for many individuals. Americans are struggling with key decisions on investments and estate planning strategies, according to a recent Hearts & Wallets report, while the National Institute for Retirement Security says more than half of Millennials and Gen Xers are more worried about their retirement security than before COVID hit.
Add in significant changes in the employment market, with women being disproportionally affected than men and unprecedented numbers of workers taking part in the “great resignation” along with continued market volatility, and it’s no wonder retirement security feels unattainable for many.
But there is hope. Making some smart money moves right now can get you on solid footing for your retirement. Don’t know where to start? Professional advice — whether from a local financial professional or one offered through your workplace, a phone-based or virtual financial professional, or even digital advice tools — can help.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Where to start depends on your personal goals and how the pandemic may have impacted your progress. Here’s what to consider:
If you quit your job as part of the ‘Great Resignation’ …
… You’ll need to make sure the career change doesn’t derail your retirement plan. Think twice before cashing out of your previous workplace retirement plan, which can cost you big in taxes and penalties. Once you’ve landed in your next role, opt into the workplace retirement plan as soon as you’re eligible, contributing at least enough to get an employer match — more if you can. And carefully consider the options for your old 401(k) or similar savings plan.
If your new plan provides access to professional advice, take advantage of it. Or consider speaking to someone outside of the workplace who can provide you advice based on your entire situation.
If you put off milestones, such as buying a house or getting married during the pandemic …
… It’s time to get back on track, but be careful not to overspend to make up for lost time. A financial professional can help look at your current financial picture to create a financial strategy that will help you reach both your short- and long-term goals, or readjust them, as needed.
For newlywed (or soon-to-be-married) couples, a financial professional can serve as a third party to help you set financial goals and navigate the sometimes-tricky waters of combining — or not combining — your finances as you begin building a life together and planning for the future. Financial professionals can also help you make sure you’re adequately protecting yourself from a variety of risks.
If you want advice but aren’t ready for an in-person meeting …
...The virtual environment provides you with a wonderful opportunity to redefine how you would like to interact with your future financial professional. Many workers have come to appreciate the hybrid or completely remote work environment during the pandemic. Consider a professional advice model where you can engage by phone to talk about retirement planning or other financial challenges you’re facing.
If stimulus checks and a less active social life have boosted your savings account …
…You’ll want to make sure you’re reviewing and making progress on your financial goals. If you’ve paid down debt, built adequate emergency savings and are maxing out your retirement savings, you may want to look at your financial wish list — maybe starting a business, buying a second home or retiring early. Either way, you may also want to put your extra cash in savings into investments that match your goals.
Unsure what to do first? If all you need is investing guidance, digital tools can be a good place to start. We have a calculator and be sure to check out the suite of tools on this resource center page. A financial professional can help you prioritize and achieve your goals and, if appropriate, help you allocate your investments.
If COVID forced you into retirement …
… Professional advice can help you stretch your nest egg as far as possible. A financial professional can work with you to determine your best withdrawal strategy, after factoring in the size of your retirement savings, the types of accounts you have (taxable or non-taxable), Social Security and other income sources, and your expenses. They can also talk to you about whether it makes sense to consider working part time or using a guaranteed income product to ensure you never run out of money in retirement.
Remember, regardless of how you arrived at your current situation, taking the right steps now can help you feel confident that a financially secure retirement is in your future. Start today with getting the advice you need.
The Prudential Insurance Company of America, Newark, NJ.
1056430-00001-00
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears EbbConstructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
What Trump’s 'Big Beautiful Bill' Means for Your Utility BillsIf passed, the 'Big Beautiful Bill' could make home energy upgrades more expensive and raise monthly costs. Here's how much more you might pay and how to prepare.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your BusinessSelling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
