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The pandemic is causing many boomers to retire. What does that mean for the economy?

Published: Jul. 20, 2021 at 6:16 AM EDT
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LEXINGTON, Ky. (WKYT) - U.S. employers have always been able to count on baby boomers to prevent labor shortages. However, the COVID-19 pandemic has put a halt in the long-standing reality causing many boomers to retire. While retiring early sounds nice, it could have long terms effects on the economy. Independent retirement planner Josh Smith of Strategic Wealth Designers joins us today to discuss the effects of boomers retiring early.

“Many have reassessed their finances,” Smith says. “Some have concluded that they are about as well off retiring now as they would be by going back to work for a few more years.”

Even as pandemic restrictions have been lifted and businesses are struggling to find enough workers to fully reopen, the number of adults ages 55 and older who are participating in the labor force is down from last fall. For some, the time at home solidified peoples’ retirement plans.

“The time at home has allowed more time for reflection,” Smith says. “More people would rather be spending time at home and with loved ones rather than having a larger retirement balance; they’d rather a focus on their family than on their retirement.”

If you are looking to pursue an encore career, consider discussing with a financial planner to ensure it won’t hurt you financially. To see additional stories surrounding business and economic news for the Lexington area, visit https://www.WKYT.com/MoneyMatters/ and if you have a question for Josh send an email to info@swdgroup.com.

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