2020 is nearing an end and the pandemic is still looming over us. With pandemic bringing in it’s own set of challenges, finances for people of all ages have been straining. This holds true for baby boomers who were looking to retire and those who would have ideally entered their golden years.

To keep up with the changes, 55+ citizens are postponing their retirement to meet with the necessary financial goals. Those who had saved enough to sustain in the last six months are struggling to cope up with additional financial drain. In such circumstances, many people are turning to their pension plans as a rescue.  

Should you open the treasure box and dip into your pot of savings? Should pensions be the last on your mind? How should you go about your retirement plan going forward?z

1. Do a Financial Reset 

Finances need to be reviewed before you replan your retirement goals and savings. If you’re a millennial, at an early career stage, you have time to replenish the dipped savings and retirement corpus. If you are in your mid thirty and forties, with your added responsibilities and uncertain times, your investment may have been hit by low interest rates and you will need to plan ahead, to make up for this lost time and probable earnings. If you are inching closer to retirement you will need to narrow down your retirement goals or postpone your retiring age to balance out the portfolio and meet your goals.

2. Tough times, tougher measures

When survival is in question, it’s harder to think about savings. But cutting on your savings will have a negative effect in the long-term. Work with your reliable financial planner to measure out best ways to spend and still save for your retirement goal.

3. Axe the Unnecessary Expenses 

Before you spend, save. Adapt the minimal lifestyle as much as you can. List, track and cut down expenses where you can. If pandemic has hit you hard, you’ve lost your job; it is crucial you reevaluate your financial standing. Paying off debts, keeping your expenses low and making up for the lost income. To build a home, you need an axe wood to shape, then mould and lastly carve it. It is tedious and time-consuming but if done rightly, the end result is worth it.

4. Do Away With Debts 

The first and foremost priority in addition to meeting your monthly expenses is to become debt free. Establish a plan to pay off your debts as soon as you can. Cashing in your savings to offset your liabilities may be a good short-term measure. However where possible, utilize the income to pay off liabilities as opposed to relying on your pensions or deposits as your armor. 

5. Prioritize Estate Planning 

Pandemic has ensured the need to build an emergency corpus. But it has also ascertained the need to financially protect loved ones, in case of an untoward occurrence. If you are the only earning member of your family or if you and your spouse are both working, don’t wait for tomorrow to finalize a succession plan. It’s never too late to protect your assets and legalize your wealth distribution preferences. This will ensure your heir will benefit from your earnings without having to go through disputes and unwarranted claims.