Evolving Employment: Immediate Concerns of Airline Workers
Don't Let Being Grounded Hurt Your Current Lifestyle & Retirement Plans
Airline workers have been hit hard by the coronavirus and it won't be clear skies and smooth flying for a while. If your retirement and financial plans were abruptly grounded, know that you have options to keep moving.
While you're socially distancing use this time to review your finances and your goals. Maybe you're focusing on a side hustle or going back to school or checking those tasks off your to-do list. No matter how you're spending your days, now is the time to look at your IRA, 401(k), stocks, and other income-building accounts.
What if You've Been Furloughed?
The CARES Act included unemployment benefits based on how much you were earning and aimed to replace half of your income. As of September 2020, this $25 billion payroll support stimulus hasn't been extended, so securing your savings and income stream is even more crucial.
If you've been furloughed and are not receiving a paycheck, you'll still have your 401(k) but will likely not be able to contribute. You should look at your vesting schedule to see if you will be able to keep your employer's 401(k) matching contributions if you leave the company. Whether or not your time as a furloughed employee counts towards the amount of time required until you are fully vested depends on the policy.
Are You Retiring Earlier Than You Expected?
If you're suddenly facing retirement. you might be rethinking your Social Security claiming strategy. If you think you need to claim earlier than you originally planned, keep in mind that you have one year after claiming to suspend benefits. If you find another job in the next year, you can repay your benefits and go back into deferral. This way, you can still receive a larger monthly benefit by delaying your Social Security benefits. There are so many ways to claim Social Security, and a financial professional can help you decide on a strategy, or help you update your strategy if necessary.
A financial professional can help you figure out a plan for using what you've saved, and help you out of short-term needs with your long-term financial goals. Give us a call if you need some help at (704) 216-2260.
Adapted from FIG