Pandemic takes toll on retirement savings

With people out of work during the COVID-19 pandemic, many are reaching into their 401(k) and their retirement plans.

While there are penalties with that, the good news is there are a few things you can do to ease the financial pain.

For those who still have several years before they retire, financial experts believe the economy can recover.

Experts also recommend you spend as little as possible.

You can even try restructuring debt.

For those retiring in the next couple of years, it may be a bit more difficult to recover so soon.

“The only thing I can say there is to remind yourself you’re not taking everything out. If you’re taking 3 or 4% out for spending, you’re still leaving most of it to heal and grow. But it’s also a time to say ‘You know, I got to tighten the belt a little, if possible,'" said Gerald Townsend, a financial planner and president of Townsend Asset Management Corp.

Townsend emphasized the importance of saving up for days like these, and it's not too late to start saving right now.

Experts say although there is a lot of demand, some businesses will not bounce back. The economy will recover, but there is no telling when.