Retirement Planning and Current Economic Conditions

Retirement Planning and Current Economic Conditions Bulman Wealth

The economic state we are in right now is intricate and, in some ways, has never been experienced before. The coronavirus has caused massive alterations in how the market functions, and we need to change our approach to retirement planning.


Government payouts were a prominent feature of the pandemic. However, the danger is that these payouts might cause inflation to soar, and when compounded with regular inflation, the consequences could be quite severe.[1] You have probably noticed that the cost of everyday things, such as food and fuel, has gone up significantly.

Shifts in the world economy

Throughout the years, the world economy saw an increase in development. With more sophisticated means of traveling and transporting goods, businesses started to venture into other countries, causing an increase in industry worldwide. This led to a period of rapid economic growth.[2] However, this trend is now decreasing as nations are becoming more protective of their industries and are no longer implementing an open-door policy. This is a matter of concern, as China is a major exporter of goods, and if they stop trading with other countries, it could have a disastrous effect on the world economy and our own.[3]

Shifts in the workforce

The effects of the pandemic have caused a reduction in the country’s labor force. Current salary increases are not able to keep up with inflation. This means that even if a person is getting a yearly raise, it’s likely that it is not actually creating more spending money for them. This is a substantial issue because if employees don’t believe they are earning enough, they probably won’t be spending money on consumer goods, which is vital for keeping the economy afloat.[4]

What this means for you

With the current economic situation being uncertain, retirees and pre-retirees should be aware of the impact inflation has on their savings. Due to the instability of the market, investments must be made with caution, taking all related factors into account. If you are in need of financial advice during this period of uncertainty, Click HERE to sign up with Bulman Wealth Group for a complimentary assessment of your finances.


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Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

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