The COVID-19 pandemic has been problematic for all of us. Many have struggled with the emotions of losing a loved one or remaining isolated from friends and family. Some have found it particularly challenging to adapt to the new challenge of working from home, wearing a mask, and learning remotely. For many others, the pandemic has caused significant financial stress associated with being furloughed, losing a job, or being forced into early retirement.

Despite all the scars the pandemic continues to leave behind, there is in fact a bright side to what we’ve experienced over the last several months—particularly for those who’ve already begun pondering and planning their retirement. The (perhaps unexpected) silver lining? Activities such as quarantining, social distancing, and working remotely have given these folks an unprecedented dry run at what their retirement may look like. In some cases, this has presented an opportunity to rethink their vision for the same. Here’s how:

Filling up free time

For retirees, the level of initial excitement can quickly wane after a few weeks: especially if they haven’t properly planned for how to spend their newfound free time. Consequently, feelings of boredom and restlessness are fairly common.

The pandemic is no different; we’ve all experienced cabin fever over the past several months. Fortunately for us, hopefully at some point this year, we’ll head back to work and begin living something resembling our pre-pandemic lives. Unfortunately, retirees don’t always get a second chance to do so.

To minimize and even prevent the shock of addressing your free time when work becomes optional, it’s important to talk with your spouse and develop a shared vision for retirement: including how to spend your days, as you’ll hear from many retirees that retirement sometimes feels tedious. Exploring new hobbies before retirement can help. Have you always wanted to paint? Learn how to play golf or perhaps the guitar? Volunteering is also a great way to get out of the house and into the world during retirement and can profoundly impact happiness. Regardless of your decision, the goal here is to find new, exciting endeavors to fill your time while putting your mind and body to work: unearthing possibilities that inspire you and give you a renewed sense of purpose.

Spending more time with a significant other

During the height of the pandemic, Gallup estimated that 51% of Americans worked remotely full-time. While that number has dropped to 33% more recently, many people living through the COVID-19 pandemic have been afforded a preview of what retired life could look like with their spouses.

If you’re like most, you probably spent a period adjusting to new roles and routines, which may have taken some time but eventually worked out. For many other couples, though, quarantining has amplified their problems. In fact, according to Legal Templates, divorce agreement sales saw a year-over-year increase of 34% this summer and this number is expected to rise.

If you think together too much “togetherness” is perhaps an issue and anticipate needing some space, strategize ways to do so without alienating your partner—ideally before retirement.

Reevaluating what matters

Prior to March 2020, our lives were so fast-paced that they passed by in a blur of errands and items checked off seemingly endless to-do lists. We’d even stress over petty things such as forgetting to pick up milk from the grocery store or drop off pants at the dry cleaners. Now, these little chores have seemingly lost their significance.

Why? Because the pandemic has given many of us time to reconsider what’s important in our lives. Constant reminders of the worldwide death toll, lines of people relying on their local food bank for their next meal, and small businesses struggling to make ends meet has served as a recipe for self-reflection.

The pandemic has forced retirees (and those nearing retirement) to prioritize what they need for retirement-planning purposes. Social connections, active lifestyles, and saving for rainy days are now more significant than ever.

Deciding where to live in retirement

If retirement is on your horizon, one of the biggest decisions you may soon contemplate is where to live. Quarantining and social distancing from friends and family have given many pre-retirees a sneak peek of life lived far away from loved ones during retirement.

How well you’ve coped with pandemic-fueled isolation thus far can help determine how close to family and friends you want to live versus moving to your dream destination—assuming you can choose one over the other.

Protecting investments

If you were nearing retirement in the early part of 2020, you witnessed firsthand how market volatility can disrupt even the most comprehensive retirement plans. Fortunately, a rapid recovery ensued. However, markets don’t always bounce back so quickly, and it therefore helps to not underestimate the importance of managing risk as you close in on retirement. While individual circumstances differ, you should typically invest more conservatively as you get older: meaning the percentage of equity holdings (stocks) invested in your retirement accounts should decrease. The reason why is to reduce risk, which is especially critical since you may not have the luxury of awaiting a market bounce-back after a dip.

While the actual number varies by each individual’s situation, a general rule of thumb is to subtract your age from 100 (higher if you expect to live longer) to pinpoint which percentage of your portfolio to keep in stocks. The remainder of your portfolio should comprise safe assets such as bonds and CDs.

Final thoughts: the pandemic and a fresh look at retirement

While the last several months have been challenging for everyone, we must take a step back and reflect on what we’ve learned through the pandemic thus far. For those who plan to retire soon, some aspects of COVID-19 have provided a test run previewing what retirement life might look like and, even better, an opportunity to rethink and change any less-than-ideal circumstances.

———

Vision Retirement is an independent registered advisor (RIA) firm headquartered in Ridgewood, New Jersey. Launched in 2006 to better help people prepare for retirement and feel more confident in their decision-making, our firm’s mission is to provide clients with clarity and guidance so they can enjoy a comfortable and stress-free retirement. To schedule a no-obligation consultation with one of our financial advisors, please click here.

Disclosures:
This document is a summary only and is not intended to provide specific advice or recommendations for any individual or business.