What you should do with your retirement plans?
According to a recent news article, more Aussies are putting retirement on hold due to the COVID-19 pandemic.
We caught up with Top 3 Local Choice, Martin Cossettini from Blue Diamond Financial based in Sydney to find out how much of an effect COVID-19 is having on the economy, and perhaps more importantly, what you can do about it.
Martin points us to recently released Roy Morgan data they shared exclusively with 7.30, which revealed that in February of 2020, around 10 per cent of 60-64-year-olds and 54 per cent of 65-69-year olds were planning to retire in 2020 or early in 2021.
By the time March, 2020 rolled around, lockdowns were shuttering businesses across the country, and an uncertain future had a significant influence on the February numbers, which dropped to 8 per cent and 39 per cent respectively.
In short, if you were due to retire this year or early in 2021, former Treasurer Peter Costello says there’s a good chance COVID-19 derailed your retirement plans or forced you to defer them for a few years.
Martin reminds us that COVID-19 is causing financial hardship for millions of people, but for many Australians, it’s just another challenge created by a growing pile of disasters. Bushfires and droughts over the past couple of years have already managed to bring the economy in many parts of Australia to a grinding halt.
Business owners have seen their businesses go from boom to bust seemingly overnight, with the hospitality industry feeling the worst of it. Pubs, clubs, and restaurant owners previously prospering are now collecting mountains of debt and looking at an uncertain future.
Martin also highlights the influence COVID-19 has been having on super funds. Because so many people are out of work, contributions are at an all-time low, and balances have fallen around 10 per cent.
“Couple dwindling contributions with the government early release incentive, and you have the perfect storm to put a stock market in turmoil.”
The value of reliable financial advice
Martin says “yes, times are tough, but it’s important to remember that you have options. If nothing else, the pandemic has proven that where one door shuts, opportunity comes knocking at another. Just look at the number of people finding employment in the delivery industry because of a rapid increase in demand for takeaway. “
He also reminds us “the stock market of today maybe off its recent highs, But history has shown us that it will eventually recover.” And let’s not forget, many industries have positively been affected by the pandemic, and their stock prices continue to climb beyond expectations. If you’re looking for examples, Microsoft, Facebook, Amazon, and Google.”
“The economy will inevitably reorganise and stabilise, and you need to be ready for any opportunities when it does.”
How do you ensure you can find financial advantages in an economy in flux?”
Martin reinforces the importance of professional advice in uncertain times from a reliable, industry-recognised financial professional.
About Martin Cossettini from Blue Diamond Financial
Our team met Martin and found him to be passionate about educating individuals as part of the journey to reach their financial aspirations. Always placing client “best interests” at the core of everything that he does, Martin is a great local choice.
Personable and approachable, Martin offers a FREE financial advisory consultation to determine only one thing- if he can put you in a better financial position (including all associated costs) than your present one. And if he can’t, he won’t take you on as a client. We think it’s certainly worth a call.
If you are concerned about your financial future, then get in touch with Martin, where you will receive tailored easy to follow solutions for getting back on track in achieving your retirement goals.
Click here to see Martin’s Top 3 Local Choice profile here.
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