During unstable economic times, older adults should take precautions when planning for their retirements. The debt ceiling crisis caused many to panic about their financial well being, but it may be best for retirement plans to stay on course.
Bonds are commonly chosen for retirement investments over stocks as adults approach the age of retirement, as they tend to be steadier and more reliable than stocks – which can fluctuate dramatically. However, ABC News reports that the current economy is driving down bond returns and they will likely remain low.
The Atlantic Wire recommends leaving 401(k) accounts alone. When the recession first hit in 2008, many cashed out before their accounts matured, but those who did not have already recouped their losses. The news source recommends holding off unless individuals are within a year of retirement because the tax penalty for accessing a 401(k) early will likely not be worth it.
Many adults who are preparing for retirement are also caring for aging loved ones, and this can be a draining job – financially, physically and emotionally. A senior alert system may allow family caregivers to take time to plan their retirement with the knowledge that their loved ones will be safe.