2020 is the year when people concern about the economic impact of COVID-19 and future uncertainty more than ever. Many people in the U.S start to think about delaying retirement as there are many benefits to do so. Delaying retirement can no doubt benefit financially as you are able to add more money on your savings and earn more on Social Security benefits. However, you may have less time to achieve your ‘to do’ list if you delay retirement. In fact, people should consider their own situation before making the decision.
If you have lost your job during the pandemic, saving for retirement may not be the first thing you need to consider. Building emergency saving is the number one priority. Also, for people who still have a longtime before retirement also do not need to worry too much as the impact can be minor. There is enough time for the stock market to recover and things will back to normal before you reach your retirement age.
For people who are reaching their retirement age, it is wise to think about pros and cons before making the decision. You are able to earn more savings if you work more years. Also, if you have your employer-sponsored health insurance, it is a good idea to stay employed. The employer-sponsored health insurance can save you a large amount of money especially in this special time period. However, if your current health condition does not allow you to work longer years, you should keep your retirement as planned. At the meantime, there are new COVID related retirement plan rules which allow qualified individuals to make withdrawals up to $100,000 without paying the 10% early withdrawal fee.