As we continue to navigate the economic impact of the pandemic, a Prudential Financial survey* finds more than half of Americans have made a significant change in their lives in the past 18 months, and three-quarters are considering life changes in the future; changes that include switching jobs, taking time off from work and retirement.
According to Brad Hearn, Prudential’s president of Retail Advice and Solutions, for those considering making a major financial change, now isn’t necessarily the time to throw caution to the wind. “For many, the impact of the pandemic has been life-changing, from income disruption, job loss and even reduced or eliminated employer contributions to insurance and retirement plans. Any financial decision needs to be carefully planned before executing,” said Hearn.
To help get your financial status ready to support a significant change in your life, Hearn offers these tips:
* Conduct a financial wellness assessment: Take advantage of free tools like this financial wellness assessment to help you create a plan to reach your financial goals. From retirement planning to household budgeting, you can see where your finances currently stand and how to plan ahead for the future.
* Set clear goals and make a plan: What do you plan to achieve with your money in the next few years and in the long run? Maybe it’s to plan for a secure retirement, maybe it’s to manage debt or it’s about upping your investing game. Set a detailed plan toward the goals. You can also tap a financial advisor for guidance and help.
* Focus on building up your savings: Charting a new path doesn’t mean you should stop building savings. Quite the opposite. It can be even more important to establish a routine to fuel a savings account as you begin a new chapter in your life. Doing so will provide flexibility, relief and, in some cases, security should there be any unexpected twists and turns.
These simple steps can help you establish a more secure foundation, whether or not you’re one of the many Americans embarking on a new path in 2022.
*The survey was conducted on YouGov Direct: 1,200 U.S. adults 18+ were surveyed on Nov. 16, 2021, from 2:49 p.m.-4:45 p.m. Eastern time. Data is weighted on age, gender, education level, political affiliation and ethnicity to be nationally representative of adults 18+ in the United States. The margin of error is approximately 2.8% for the overall sample.