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Has the Pandemic Shifted Your Retirement Plans?

Has the Pandemic Shifted Your Retirement Plans?

March 27, 2022

For nearly 150 years, company retirement plans have been a mainstay for many Americans as they structure their financial future.

Like so much else, COVID has affected the degree to which we may be able to count on those company sponsored plans.

At One Financial Services, we help guide our clients through the planning and evaluation process.

The way some pensions are being overseen are creating concerns. More private companies are considering selling their pension plans to financial institutions or insurance companies who may be more concerned about short-term profits than long-term stability.

It’s also important to note that some private companies hit hard by COVID-19 have offered buyouts and early retirement packages to employees in an effort to cut costs. As the virus continues to impact the country, it is possible that trend may continue with other pension-providing companies if they begin to feel the effect of the pandemic.

If your company offers you a severance package or buyout, your One Financial Services advisor will help you evaluate your options including where you are on your retirement journey.

According to the business-focused international news organization, Quartz, more than 3 million Baby Boom workers have left the labor force since the coronavirus pandemic began in March of 2020. This decision could shape your financial future causing your retirement to look much different than you expected.

Several questions that need to be considered are, “How much money is coming into the plan?” If you’re relying on a public pension, do you live in a state with a strong tax base or one that is declining?

If your pension plan is private, does your company look to be profitable in the future?

The answers to these questions, along with the advice from your One Financial Services advisor will help you decide whether you should opt for a lump sum distribution or monthly payments over your lifetime.

At One Financial Services our team is always there for you to help you build a confident financial future.