Recessions are a period where there’s increasing unemployment and overall economic distress. A recent Forbes article reported that 90% of CEOs believed a recession would happen within the next 12 months. If you’re over 60 and concerned about the economic forecast, there are multiple ways you can prepare for a recession.
Let’s dive deeper into four strategies you can pursue on Recession :
1. Get a life insurance policy
Life insurance policies can help protect you and your family in the midst of economic turmoil. The death benefit that goes to your beneficiaries can allow your family to continue paying daily expenses through a recession. In addition, the coverage amount you select can help keep them from being financially burdened by your medical expenses and funeral costs.
If you choose a whole life policy, you can borrow against the cash value when you need some extra financial help. The money you borrow can be used to pay for anything, such as unexpected medical bills or car repairs.
Life insurance for seniors over 60 can be affordable, depending on the type of policy you choose and the amount of coverage you seek. For instance, a term life policy with a low death benefit may be your best bet for an affordable rate.
2. Pay off your debts
Given that unemployment can rise during a recession, it’s wise to try to pay off or reduce your debts now. If you end up losing your job, you may be unable to pay off some of your bills on time. The less debt you have to deal with, the more you’ll be able to continue paying for essential expenses such as rent and car payments. If you fall behind on credit cards and loans, you can contact creditors for hardship concessions. Some options you might be given include putting payments into forbearance or making interest-only payments.
3. Consider your career opportunities
If you’re over 60 and still working, it’s important to have a backup plan should you be let go from your current job. Make sure you have a large network of connections to reach out to for any potential opportunities. Review your resume and up date it with all the current skills and experience you have. Find potential ways you expand your skill set through additional training and education. It’s also smart to look into pursuing side gigs so you can continue getting income in the event of a layoff.
4. Build your emergency fund
At 60, you may already have an emergency fund, but it’s a good idea to continue building it. Cut back on extra expenses like takeout or subscriptions and focus on saving more. According to Wells Fargo, your emergency fund should cover about three to six months’ worth of your living expenses.
The bottom line
Although a recession may be looming, there are steps you can take to stay financially afloat. Get a life insurance policy to ensure your loved ones can cover expenses if you pass away. Eliminate as much debt as you can, and build an emergency fund to prepare for the unexpected. Additionally, it’s smart to consider career opportunities in case you lose your job. Focusing on employing each of these strategies can help you to stay as prepared as possible for the next recession.