More than 1 in 4 Americans are raiding their retirement accounts after a coronavirus-related job loss

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.”

Continue Reading on CNBC

Articles linked to on this page are from third party sources. Opinions expressed by the authors may not be representative of CWM, LLC or its affiliates.

Share:
8 Legitimate Tax Loopholes You May Be Missing

3 Methods to Not Run Out of Money

What's the #1 fear in retirement? Running out of money. Get our step-by-step guide to help ensure your assets last a lifetime.

Download Now

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Contact Us