If someone is considering retiring from their job in 2022, they should reconsider doing so because of three primary factors that should be considered based on current economic and global health conditions. This is according to a column published in USA Today, originating from The Motley Fool.
The first reason listed relates to the COVID-19 coronavirus pandemic, a persistent issue that has kept financial markets in turmoil and which has been exacerbated by waning vaccination rates and variants to the illness that have spread throughout the world.
“[T]hings could improve on the COVID-19 front at some point in 2022,” the column says. “But right now, cases are up, and there’s a new variant of concern that could limit your ability to travel and do some of the other things you had in mind for retirement. And so you may want to work a bit longer to stay busy and boost your savings in the absence of knowing what your days will look like.”
Recent data from global health experts regarding the recently-discovered “omicron” variant of COVID-19 indicate the possibility that while more virulent, the resulting illness from the variant could lead to less severe illness overall, but data is still being cultivated by bodies including the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO).
The second reason to avoid a 2022 retirement, according to the column, is due to rising inflation.
“If you retire in 2022, it could end up being a financially stressful prospect,” the column says. “In fact, if you previously mapped out a budget for retirement, you may have to throw it out the window in light of how high consumers’ costs are these days.”
While Social Security payments will see a substantial increase in 2022 due to the cost of living adjustment (COLA) reacting to higher inflation, additional associated costs could still erode the difference such an increase will make, the column says.
“[I]f you plan to retire and sign up for Medicare, you should know that rising Part B premium costs will eat into your benefits, giving you less buying power at a time when everything costs so much money,” it reads.
The final reason someone should consider avoiding retirement in 2022 is due to an increased necessity for general stability, the column reads.
“[I]f you have a routine you’re used to, you may want to stick to it until things settle down with regard to not just the pandemic, but the economy, too,” it says. “Of course, if you hate going to work, then by all means, retire if you can afford to do so. But if you like your job and you’re not worried that it’s compromising your health (say, it’s minimally stressful and you can work from home), then you may want to keep at it while things around you are so turbulent.”
Read the column at USA Today.