COVID-19 has affected just about every aspect of our lives: our jobs, our health, our family and social interactions, children’s education, and leisure time.
But what has it done to retirement prospects? Not surprisingly, it has hurt them.
According to a survey of American workers with qualified retirement savings accounts, “...almost half (49%) had experienced a reduction in work income through job loss, or decrease in hours and/or a pay cut”.
Also, “...workers who lost their jobs or experienced a drop in income due to the COVID-19 pandemic were at least twice as likely to take money from their qualified retirement savings accounts as those who weren’t impacted.”
Retirement plans for older workers are particularly stressed. Not only do they have less time to make up any shortfalls, but seniors are more at risk from COVID-19 than younger people, so returning to work is more problematic. According to the Urban Institute, the combined rate of unemployment and underemployment for workers over 65 was 26% recently, much higher than for those between 25 and 54, and the largest gap on record.
How can we improve our retirement plans to withstand the current shock of this pandemic and future crises, which will inevitably occur?
This week we’ll be joined by one of WEALTHTRACK’s long-standing and most popular guests, retirement expert Mary Beth Franklin. Franklin is a Certified Financial Planner, award-winning personal finance journalist, Contributing Editor at InvestmentNews, and Author of “Maximizing Social Security Retirement Benefits.”
Franklin explains what the pandemic has revealed about the state of retirement planning in the U.S., and how to best manage your own retirement in the current situation.
WEALTHTRACK # 1711 originally broadcast on September 11, 2020
More Info: https://wealthtrack.com/how-covid-is-affecting-retirement-with-retirement-benefits-expert-mary-beth-franklin/
Maximizing Social Security Retirement Benefits: http://www.investmentnews.com/MBFebook
Surveys & Articles:
https://www.limra.com/en/newsroom/industry-trends/2020/secure-retirement-institute-covid-19-related-job-loss-or-income-reductions-drive-americans-to-tap-their-retirement-savings/
https://www.nytimes.com/2020/06/26/business/retirement-coronavirus.html
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