After starting your retirement portfolio, it is important to continue to maintain a strong plan to help further build your savings. As part of these efforts, it is important to keep close track of any expected retirement trends each year. In 2021, it becomes even more crucial to be aware of retirement trends as the general economy continues to recover from the ongoing COVID-19 pandemic. The following retirement trends are important to know about while moving through the remainder of the year.
Increase In Early Withdrawals
According to the article from Magnify Money, nearly 30% of Americans made early withdrawals from their retirement accounts at the beginning of the COVID-19 pandemic. This is a significant trend to be aware of, as pulling from retirement accounts can have an impact on a person’s long-term financial stability. It can also impact the economy as more people dip into savings to maintain their current financial status.
More Focus On Retiring Early
The COVID-19 pandemic has unsurprisingly led many people to reconsider their priorities, including how they spend their time. In 2020 alone, nearly 39% of individuals were focused on retiring before reaching the age of 65. This is a modest increase from previous years, as more individuals are focused on how they spend their time. This trend could potentially impact how the economy recovers from the pandemic, as higher retirement levels can lead to shifts within the economy.
More Individuals Are Working With Social Security Benefits
Social security is an important program to keep an eye on, as it provides retirement, disability, and survivor benefits to recipients through social insurance. While individuals traditionally retired upon receiving social security benefits, recent trends have found that approximately 74% of recipients will continue to work in some capacity. This is a trend to keep in mind, as it could impact how social security benefits function in the future. Individuals who are concerned about accessing social security benefits should keep close track of their savings to ensure that they can be prepared for any unexpected changes.
Understanding retirement trends can not only reduce the risk of experiencing unexpected financial setbacks, but it can also help when preparing for the future. Understanding how events like the COVID-19 pandemic can impact a retirement account will also be an important factor to consider as well.