Actions

COVID-19 causes concerns for soon-to-be retirees

poster (12).jpg
Posted at 7:43 PM, Jun 10, 2020
and last updated 2020-06-10 19:58:24-04

A recent study found one in four workers reported that the pandemic increased their worries about being able to retire, but one expert told Taking Action Reporter Jackie Callaway there are ways soon-to-be retirees can reduce their worries and safeguard their money.

“You don't want to have all your money taking the same amount of risk,” said retirement advisor Celine Pastore.

Pastore advises her clients to divide retirement savings into three separate categories:

  • Put one year of income in a money market account or an interest-bearing cash fund, so you don’t have to raid retirement accounts if stocks turn volatile
  • Invest a portion of your assets in moderate-risk funds you won’t need to touch for the next 2 to 5 years
  • Keep the rest in long-term investments with a higher risk tolerance

“The number one thing I see with those who are successful in retirement and those who are not as successful is they spend less than they make. They are very good at saving," said Pastore.

For those who are still working, experts suggest saving at least 10 to 15 percent of your income in a retirement account and making sure to factor in the long-term cost health care in retirement.