How Has COVID-19 Impacted Your Retirement Planning?

The coronavirus has demonstrated how quickly financial emergencies can happen and how important planning can be. Life has changed dramatically since March, when COVID-19 began disrupting the health and well-being of Americans across all age groups.

In response to the economic crisis and financial fallout, many individuals have had to reconsider their savings and spending plan to focus on covering everyday needs. For some, that meant hitting the pause button on travel plans, graduate school and weddings. For others, it meant putting big purchases like a new car or home on the back burner. And for some, who were planning to stop working soon, it meant rethinking when and how they retire.

How might you move forward financially?

Depending on your age or stage of life, here are some things to consider:

  • Gen Zers: If you're just starting out, cash may be especially tight. But now is not the time to postpone saving for retirement. The contributions you make while you're young have more time to grow, leaving you with a potentially larger nest egg in the future. Waiting even just five or 10 years to get started will mean that you'll have to set aside more per month to reach your goals at a time when your expenses may also be higher.
  • Millennials: Younger workers, who often have a higher allocation to stocks in their retirement savings plan, may feel unsettled by the market's early losses and its continuing ups and downs. But keep in mind that you have decades ahead to bounce back from a market downturn. Even when being invested in the market feels like a roller-coaster ride, the best course of action may be to simply stay calm and continue to save.
  • Gen Xers: Many mid-career workers are sandwiched between raising children and caring for aging parents. Before you dip into your retirement savings for big-ticket items, consider other sources of cash to fill the gap. For example, consider asking your child's college to make an adjustment to their financial aid package or reduce tuition, especially if your family's income has changed or the school has switched to remote learning because of COVID-19.
  • Baby Boomers: If you're nearing retirement or are already there, it's possible that COVID-19 has temporarily derailed your plans and left you considering whether to delay retirement to give yourself more time to build your savings cushion. If you haven't done so already, update or create your budget. Like many people, you may determine that you've actually been spending less during the COVID-19 crisis. Also, carefully review your goals. Realigning your budget with your goals may give you more financial breathing room than you imagined.

If you have questions about your retirement journey, contact your local Mutual of America representative today.

You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 1-800-468-3785 or visiting Read them carefully before investing.

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment options you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should consider a variable annuity contract's other features before making a decision.

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