As for healthcare, most retirees will rely on Medicare once they’ve turned 65, but if you retire before that, make sure you purchase an individual health insurance plan so you’re not without coverage. Even once you’ve enrolled in Medicare, you may want to consider a Medicare supplement or Medicare Advantage plan to fill in some of the gaps that Original Medicare doesn’t cover. If you have money in a health savings account (HSA), you can also call upon that to help you pay for medical care.
There’s no way to predict every expense you could face in retirement, especially with a pandemic still going on. So the best thing to do is just be conservative with your money. If you’d planned to travel in retirement and now find yourself staying close to home, keep your travel funds as extra emergency savings. When things calm down and your retirement accounts recover, you can decide whether to reschedule your travel or hold on to your money to put toward living expenses.
2. Resisting the temptation to sell investments due to market volatility
It’s difficult for anyone to watch their savings plummet, particularly retirees who count on their investments to pay for everything. The Principal survey found that roughly half of participants would make changes to their investment strategy if they lost less than $10,000, and many retirees reported moving their money to more-conservative investments, especially in the first quarter of 2020 when the pandemic was just starting to shut down the country.