Since the Covid-19 arrival, many fields have been altered or had to be reinvented to avoid lagging behind. Technology keeps developing and helping organizations in their adaptation to new ways of working. But some have not been reached by these advancements, affecting part of society in terms of work and personal economy.
In this way, those who knew how to save before the pandemic were able to cover for their expenses, but only to some extent. More than a few were left thinking: did I save enough, or appropriately? Keep reading to learn more about what has the pandemic revealed about our ways of saving.
Protection against new unforeseen events
The COVID-19 has had a significant impact on the way people carry out their financial planning. Many are reconsidering how to address from now on their saving methods and goals.
Surveys show that due to the world crisis most people plan to save more money, with better personal finances management that allows them to tackle unforeseen events. And facing the “new normal”, the crisis will probably continue or leave consequences regarding uncertainty, which will probably persist after the pandemic.
It is therefore evident that, in this context, the lack of planning is one of the most frequent issues. A significant part of the population has not been able to save during last year, which has led them to a financial crisis and the consequent exhaustion of their reserves. Some of these situations were aggravated by health issues and the lack of comprehensive coverage.
Planning vs. Improvisation
According to a Pew Research survey, only 23% of every household kept an emergency fund by the time the pandemic broke out. And said fund, without its main sources of income, would only suffice for three months.
Another problem that was unveiled by the COVID-19 pandemic is that saving is important, but doing it correctly is equally significant. This is why tailored financial advice is key to adequate planning that can truly provide financial peace of mind and confidence at every level of income.
The idea of going through unforeseen events similar to the pandemic raises another question: do people prefer an early retirement, or would they rather keep on working to have their needs fully covered? According to the study previously mentioned, almost three out of four of the consulted affirmed that they plan to continue in activity once they retire.
Having the chance of working remotely and the uncertainty of whether their funds will suffice after retirement, most people decide to remain longer in the labor market, knowing that the opportunities to obtain additional income will increase.
The COVID-19 pandemic has had an impact on every aspect of people’s lives. The trends described seem to have come to stay, although they were already there, and the pandemic just made them more visible.
At Supra, we can help you plan and carry out your financial future. Our team of first-rate professionals will advise you on the best options to protect your capital and have your needs covered when retirement arrives. Write us!