2020 has been a pretty crazy year so far. If you fall into the Boomer category you may be forgiven for thinking the world has gone mad, and retirement on a beach far away from all the mayhem might be the most appealing idea right now, but the reality for many is they don’t know what comes next.
Healthcare has improved around the world, and we are living longer than ever before. Americans are not only living longer but are remaining in the workforce longer. AARP found that 20 percent of Americans older than 65 prefer to remain in the workplace rather than retire. That's close to double the number of senior citizens who were going to work in the mid-80s.
For years, we have been told that 60 is the new 40, but with the advent of the coronavirus, all that shifted. Boomers are now being told that those as “young” as 60 have weaker immune systems and face greater risk from Covid-19. If you are over 80, it’s even scarier. China saw a 14.8 percent death rate for those 80 and older who contracted the virus.
Even if you don’t get it, aging is a scary prospect especially given the current job market and economy. About three-quarters of the people who’ve lost their jobs because of the impact of coronavirus are now at risk of not being able to keep up their standard of living once they have retired.
One way to try and minimize the impact of the pandemic on your lifestyle may be to file for Social Security at 62. Doing this as soon as you’re eligible, means although your checks are lower than if you were to wait until you were 70, you still get a monthly check in the here and now, and this could assist you. Not having to dip into retirement savings makes the future easier to confront and lessens the strain on your current financial situation. The Government Accountability Office discovered that 50 percent of those 65 and above got the lion's share of their income from Social Security.
No matter what, the sun will rise in the future, and we have to meet it head-on. Boomers are no different. They have been through a lot. They have seen the world go through many upheavals, and although this is an unprecedented time in the world, Boomers will have to figure out what’s next for them.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC