The crisis has the potential to upend many Americans’ retirement plans.
Americans need on average 70% of their pre-retirement income to live comfortably after exiting the workforce, but many do not have that much saved away — and the coronavirus crisis is about to make it worse.
But that figure is expected to drop seven percentage points, to 48%, because of the pandemic-fueled recession. Workers who retire at 65 years old could have a replacement ratio drop from 69% to 60%. About 3.1 million older workers and their spouses will fall into “de facto” poverty when they retire, which is a measurement twice as high as federal poverty levels, said Teresa Ghilarducci, the director of SCEPA.
Comparatively, higher-income older workers will see the effects of the coronavirus crisis in their portfolios. Middle-income workers will perhaps be hit the hardest, because of market losses for those who have saved as much as they can in retirement accounts. The coronavirus crisis is worsening many Americans’ retirement goals — especially considering so many were already underprepared for their futures.
“Using a percentage of pre-retirement income suggests financially identical income needs during retirement,” he said. “That just doesn’t happen.” Everyone has different goals in retirement — some may want to stay in their communities and volunteer part-time, while others want to travel the world — and those dreams have different price tags.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
This Indian Paint Manufacturer Is Boosting Salaries Amid COVID-19 CrisisMumbai-headquartered Asian Paints surprised its 6,500-plus employees by announcing a salary raise to boost morale.
Read more »
Children with COVID-19 may be less contagious than adults, two UK epidemiologists sayThere are tentative signs that children may not spread the novel coronavirus as much as adults, two top epidemiologists said on Tuesday, though they cautioned that the bad news was that human immunity may not last that long.
Read more »
The Race to Develop a COVID-19 Vaccine, ExplainedWe talked to experts to better understand why it’s taking so long. The answer is complicated
Read more »
Make No Mistake: Leaders Are Using COVID-19 to Block Abortion Access'I want all the people trying to block access to reproductive care to know there is a generation of young people prepared to stand up and fight for their rights.' sidneyflanigan of neverrarelyfilm on why abortion is essential healthcare.
Read more »
Op-Ed: How the COVID-19 pandemic has created dire legal problems for the poorThat's why Congress' new coronavirus relief measure needs to increase funding for free legal services by $1 billion.
Read more »
The forgotten front line: Nursing home workers say they face retaliation for reporting COVID-19 risks“When you hold them accountable, they see you as a nuisance,” a certified nursing aide at a Chicago nursing home said. “They’d rather have someone with less experience as long as you do what they say.”
Read more »