During these recent challenging times, it would be an understatement to say that people have become concerned. Not only are people worried about the risks to their health, but also the future of the economy and their personal finances. You’ve chosen an Acts community to secure your nest egg and fully prepare for retirement, but that financial security doesn’t fully take shape until you’re moved in. Meanwhile, the ups and downs of the financial markets is enough to make any retiree a bit fearful.

Remember as you read further that the perfect solution to any uneasiness you may be feeling is getting moved into your Acts community sooner rather than later.

Acts spoke with Brad Breeding, Certified Financial Planner™ and Co-Founder/President of MyLifeSite, to get his take on the recent economic climate, and what options may be available for those of us looking to retire during a recession.

For Now, the Economy Is Still Stronger than it has Been in Years

It may be hard to realize now, but the stock market was quite a bit lower in late 2018, and of course, far worse during the Great Recession in 2007. Despite market volatility today, many economists understand that this situation is different as it’s not the result of a systematic collapse but rather a symptom of short-term uncertainty. This is promising, but it’s not a guarantee of stability moving forward. 

“The market is always looking forward,” Breeding says. “This is why we can have huge unemployment figures come out, and the stock market goes up. It doesn’t seem right in some ways, but this is in part because the market isn’t paying as much attention to what is happening today, as it is to where we’ll be in five or six months. Right now, it seems the market feels that we’ll be in a better place at that point.”

There is a sense that once the economy fully opens back up, many small businesses will be ready to begin re-hiring. Although this will not happen overnight, and we may see another dip or two before this is over, Breeding says the economy should be able to get back on track sooner than past economic recessions, especially if we see positive news about treatments and vaccines. 

How Does a Recession Affect Retirees?

Although it’s quite common to feel panic during times of uncertainty, it’s essential to have clear long-term objectives and to follow a process to meet those objectives. Without clear objectives, it’s almost impossible to know the effects of stock market volatility on your plan. If the recent changes in the market have not substantially altered your ability to achieve your retirement goals, then there is no reason to panic, says Breeding. It may be necessary to make some adjustments to your investments but be sure to do so analytically rather than emotionally.

Some financial adjustments may come down to your spending. No matter what economic class you fit under, everyone has to find a balance between discretionary and non-discretionary expenses. For those whose retirement income has been more impacted, cutting back on discretionary expenses may be necessary to maintain your retirement plan. Fortunately, with current social distancing and stay-at-home orders, you may already be doing this by not vacationing, dining out less, and engaging in fewer activities outside the home.

Be Aware of the Downfalls of Aging in Place

You have likely become familiar with the term “social distancing” and have probably heard the suggestion to stay at home. This is excellent advice; however, where your home is and who lives there can have a considerable impact on your physical and mental health. If you are less mobile or require some assistance living at home, you may have to rely on family members or in-home caregivers. With more people coming and leaving, this can increase your risk of exposure, as would any hospital visits due to an injury. In addition to these health risks, it can become extremely costly to maintain this lifestyle long term.  

These kinds of scenarios highlight the benefits of living at a CCRC or continuing care retirement community. CCRC residents enjoy the convenience and safety of having all their healthcare available without needing to leave their community. Depending on the type of contract, the monthly fee may not be affected if and when additional health care is needed. The monthly fee usually includes access to on-campus amenities and other conveniences, which can significantly improve your quality of life. 

“Aging in place can be difficult in any environment, and even more so in situations as we find ourselves in now,” Breeding says. “Loneliness, social isolation, and caregiving challenges are magnified, especially for those living alone.”

We’re Excited to Get You in Your Future Home

We’re so happy that you have chosen an Acts community as your retirement solutions. We know that once you get moved in to take full advantage of the security, amenities and peace of mind, you’ll also rest easy knowing you made the right decision. Reach out to your Move-In Coordinator or Life Care Consultant today to talk about more definite details related to your move to Acts. We’re looking forward to speaking with you.

This article was made possible through the collaboration with Brad Breeding. Mr. Breeding is the Co-Founder and President of My LifeSite. You can learn more about Brad Breeding and read his insightful articles covering senior living at MyLifeSite.net.