Did the pandemic derail your retirement health?

Katherine Tierney, CFA®
Senior Retirement Strategist, Client Needs Research
The coronavirus pandemic took a toll on the physical and mental health of many Americans. For many, it also hurt their retirement health. According to The Four Pillars of the New Retirement,* one in three of those planning to retire say COVID-19 has delayed this decision.
Your retirement health starts with your goal: when you want to retire, how you want to spend your time, and your desired lifestyle. After all, how much you need to save for retirement is driven by how much you want to spend in retirement.
If the pandemic derailed your retirement health (or you just want to improve your retirement readiness), you can still work to catch up. Here are some tips to help get your retirement strategy back on track:
Source: Edward Jones
Take advantage of catch-up contributions if you’re age 50 or older. For 2021, individuals age 50 and older can contribute an additional $1,000 to an IRA, for a total of $7,000. They also can contribute an additional $6,500 to an employer retirement plan above the $19,500 basic limit, for a total of $26,000.
Whatever your priorities, aligning your retirement strategy with them will better position you to achieve the retirement you desire. And the earlier you plan, the more flexibility you typically have with your strategy. Your financial advisor can partner with you to make sure your retirement strategy is aligned to what’s most important to you.
* Age Wave/Edward Jones study, March 2021.