Yesterday, we highlighted the fact that more than 50% of Americans were forced to retire prematurely. Just this morning Ted Knutson, Contributor at Forbes, published the following information that adds the exclamation point to our post. Thanks, Ted.
“The COVID-19 recession is likely to cost the jobs of 22 percent of middle-income workers age 50 to 60 making between $48,000 to $137,730 and the jobs of 15 percent of their peers earning above that, according to a report released today.
The recession will force an additional 1.1 million of these middle-income job holders and 360,000 higher-income older workers into a substandard standard of living when they retire, says the study by the New School of Social Research’s Retirement Equity Lab (ReLab).“
ReLab Director Teresa Ghilarducci believes that older workers are likely to get hit harder by this recession than others “because the widely publicized larger vulnerability of the aged to COVID-19 is going to increase age discrimination in hiring.”
Retirement account balances are abysmally low for many American workers and the hit that their portfolios took earlier this year won’t help. Couple the fall in asset levels with the incredibly low interest-rate environment and this combination is a formula for disaster. Help is needed now.