Your retirement and COVID-19: 1-year later
36% are even more confident in their retirement plans
A majority of Americans are finally sizing up their retirement options more than a year after the pandemic gripped the nation, creating an economic recession and a swath of job losses.
Upward of 82% of Americans have reevaluated their priorities and admitted that the pandemic altered their plans, according to Fidelity Investments’ 2021 State of Retirement Planning Study.
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The study indicated that while the concerns have shifted since the start of the pandemic, "people are still more stressed than before on several fronts," according to Fidelity.
In fact, one-third of respondents claim that it may even take them two to three years to get back on track due to job losses or retirement withdrawals, according to Fidelity.
About 36% of Americans are more concerned now than at the start of the pandemic on the ability to maintain a nest egg in retirement. A nest egg is a substantial sum of money or other assets that's been saved and/or invested.
However, despite that fear, experts at Fidelity say retirement savings accounts have actually reached record levels during the final three months of 2020.
"This is a remarkable validation of the faith so many retirement savers have in their own financial future and their ability to move forward confidently," said Melissa Ridolfi, senior vice president of retirement and cash management at Fidelity Investments.
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About 42% are more afraid now about being able to afford health care costs in retirement compared to the 37% at the start of the pandemic.
However, fewer individuals (41%) now are concerned about their ability to pay for their child's education. About 32% of respondents said they are concerned about monthly bills, a decrease from April 2020.
According to the study, a majority of Americans indicated that they are still confident they’ll be able to retire on their own terms. About, 36% are even more confident in their retirement plans than before.
“This past year has been a roller coaster, but for those Americans with a retirement plan, it should come as a relief to know the fundamentals remain sound,” said Ridolfi.