More than 38 million people have filed for jobless claims since the coronavirus pandemic started.
The unexpected loss in income is causing many Americans to tap their retirement savings just to make ends meet. And many people who lost a job — or have a spouse or partner whose income has declined — didn’t have much money saved in the first place.
Half of Americans who were recently furloughed or let go have saved less than $500 for retirement in the past year — and 70% have saved less than $1,000, according to a report by fintech firm SimplyWise. Of those who have an individual retirement account, 401(k) plan or retirement savings account, 1 in 5 now plan to tap those funds.
“It’s hard to think about the future when the present feels impossible, particularly given this unprecedented crisis,” said SimplyWise CEO Sam Abbas. “It’s already hard for Americans to save, let alone for their future and retirement.”
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