• FLM Wealth Management

Has Covid-19 affected how much you’ll need to retire?

Whether it’s physically or fiscally, everyone has felt the effects of Covid-19 in our daily lives. With the widespread consequences still being uncertain at this time, many have started wondering if this situation will change their retirement plans.

While the answer isn’t a definitive ‘Yes,’ evidence suggests that Covid-19 will impact the plans of most people.

When looking at whether or not you need to re-evaluate, there are three main concerns to be aware of: the market dropping, unexpected retirement, and any new health concerns. These three things can change not only how much you have access to right now, but also how much you’ll need to make your retirement enjoyable.

The Market

The markets dropping globally is likely to be the catalyst for you looking into your new financial situation. With varying reports from the news and an uncertain trajectory for the virus, it can be hard to predict what economic recovery will look like.

For those who have some time before they retire, many plans account for the recovery of unexpected market dips. However, if you are about to retire or about to start using drawdowns from your retirement funds, things may look a little different for you.

Because the markets are still low, any amount that you pull out of your retirement funds now will likely be a bigger percentage of your overall funds than you had initially accounted for. This means there will be less left to recover when the markets change again.

With that in mind, you may need to review your financial plan to make sure that you still have enough in your retirement fund to live comfortably. It can also be helpful to talk to your adviser about this.

Unexpected retirement

Unemployment the world over is higher than most of us have ever seen it. The workforce is growing and the available jobs are shrinking. This has left many people facing redundancy and, depending on age and circumstance, early retirement.

While there are undeniable joys to retiring early (more time to do the things you love,) it can be scary when it comes out of nowhere. Suddenly you find yourself with two, three, five, maybe ten more years of retirement than you had initially accounted for.

These unexpected changes mean that you’ll need to look at your plan again to make sure you’re covered for the additional years. Some plans will have more flexibility in them than others. If that’s the case, it can be worth looking at what lifestyle changes you can make to keep yourself comfortably retired for years to come.

Health concerns

New health concerns are one of the most difficult things to find you’ll have to plan for. Unfortunately, catching Covid-19 has the potential to leave long-term, lasting effects. This means that you may need more help, or help sooner than you had originally planned.

Most financial plans will take into consideration the eventual need for care or assistance at a later age. However, if you find that your current overall health has changed, the time you have until that expense occurs will likely have changed too.

Be sure that your health is accounted for and that you’ll have access to all of the help you might need in the future. Although you can’t plan for everything, reviewing your plan regularly and making adjustments can make it feel as though you have.

Covid-19 has changed the lives of virtually everyone around the world right now. To make sure it hasn’t affected your future too, take these things into consideration. It may be a good time to review your financial plan and put new measures in place. Especially if it looks like the pandemic has, in fact, affected how much you need for retirement.


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