Article Summary from MarketWatch- Opinion: Half of Americans over 55 may retire poor

Article Summary from MarketWatch- Opinion: Half of Americans over 55 may retire poor

 

Article Key Points:

 

·         Over half of Americans over 55 may retire in poverty

 

·         Poverty is defined as having to live on less than $20,000 a year.

 

Reasons:

 

·         Loss of job due to COVID and an inability to get it back; many job losses are permanent

 

·         No employer contributions to 401K's

 

·         Inability to save due to the impacts of job loss and having to tap into savings to survive

 

·         Most vulnerable population are those who lose their jobs in their 50s, and unable to access Social Security or Medicare benefits

 

Mitigation Strategies mentioned:

 

·         Create a six-month emergency fund

 

·         Make full contributions to 401K, even if you do not get a match

 

References:

·         Teresa Ghilarducci, expert on retirement, of The New School based in New York

o   For additional information from your local library or Amazon; here are some of Ms Ghilarducci's books

§  https://amzn.to/3dpxLWP ; Rescuing Retirement: A Plan to Guarantee Retirement Security for All Americans (Columbia Business School Publishing) Hardcover – Illustrated, January 23, 2018

§  https://amzn.to/36VJ1c8 ; How to Retire with Enough Money: And How to Know What Enough Is

·         https://www.marketwatch.com/story/half-of-americans-over-55-may-retire-poor-2020-10-01

Date of Post: 11Oct20