Financial priority studies

Continuing to prioritize saving for your future is paying off for investors, according to researchand studies. Despite the challenges of the past year, more than two-thirds of respondents have their retirement goals in place.

Among those who had previously determined when they would retire:

* 69% said the pandemic did not change their plans.

* 18% said the pandemic has accelerated when they planned to retire: they did so earlier than they originally expected or planned. Among those who retired earlier than originally planned – 83% said this was voluntary.

* On the other hand, 13% said the pandemic delayed their planned retirement date.

Bottom line: Developing a financial plan that includes strategies to protect your assets and weather the unexpected can help investors meet today’s challenges while remaining focused on tomorrow’s goals.

Protecting your finances

The pandemic has increased investors’ engagement with your financial life and led many to take steps they might otherwise have postponed, says Gutiérrez Mayorga.

Financial Priority Surveys

Of the respondents who did not have the following prior to the pandemic:

Since the start of the pandemic, some investors have more conversations about money with family members, including:

* 30% of respondents with children increased the frequency of financial conversations with them.

* 24% of respondents with a spouse or partner increased conversations about short-term financial issues and 25% increased conversations with their spouse/partner about long-term investments.

* 23% of respondents with siblings talk more about their personal finances, their siblings’ finances or their parents’ finances.

Bottom line: taking important steps such as estate planning or having conversations about money with family members can help investors bolster their financial confidence.

Spending, saving and investing

Nearly half (45%) of respondents reduced their spending during the pandemic, and 30% expect to continue to be more thrifty with their money in the future.

At the other end of the spectrum are investors who feel a pent-up urge to spend. A quarter of respondents plan to splurge when life returns to normal.

Expected spending when the pandemic ends:

* 26% plan to spend more money than usual on things they have had to put off.

* 57% plan to spend the same amount of money as they normally do.

* 17% plan to spend less money

Financial Priorities Studies

Investment Expectations

Among this group of respondents fortunate enough to have $100,000 or more in investable assets, 62% plan to invest the same amount in 2021 as they did in 2020, 26% of respondents plan to invest more and 12% expect to invest less.

Amount respondents invested long-term in 2020:

* Less than $20,000 (33%).

* $20,000-$49,999 (25%)

* $50,000 or more (29%)

Carla Fowler

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