Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Saving for Retirement

Workers Tapping Retirement Savings Due to Coronavirus: Survey

By Ginger Szala

X
Your article was successfully shared with the contacts you provided.

An estimated 31 million people — 27% of those working or recently unemployed — who have retirement savings are withdrawing or planning to withdraw from those funds due to financial needs caused by the coronavirus, according to a recent study by Bankrate.com.

Age-wise, millennials seem to be at the weakest point, with 20% of them having already used retirement savings as a source of income since the outbreak, compared with 8% of Gen Xers and 10% of baby boomers, states the study.

“More than one in four working or recently unemployed households with retirement savings has either already used some for immediate income or plans to do so, including half among the recently unemployed,” according to Greg McBride, Bankrate.com chief financial analyst. “This is most pronounced among those younger households who may miss out on decades of future compounding if forced to turn to their retirement savings during these trying times.”

Other findings:

  • 45% of the lowest earners (making under $30,000 per year) have pulled money out of savings during the pandemic. This compares to 30% of those making $30,000 to $49,999, 34% of those making $50,000 to $79,999 and 17% making $80,000 or more.
  • Nearly half of those working or recently unemployed are contributing the same amount to their retirement savings as before the pandemic. However, 18% are contributing less.
  • Reasons stated for the reduction in contributions included loss of income (62%), wanting to keep cash on hand (33%), additional expenses (20%), helping other adult family members (18%) or additional debt (17%).
  • 56% of those who are still employed are contributing the same amount to retirement savings as before the pandemic, compared with 22% of those who are recently unemployed.
  • 59% of households making more than $50,000 a year are contributing the same amount to retirement savings as before the pandemic, versus 39% of those making less than $50,000.

The online survey of 2,407 adults was done through YouGov Plc. from May 13-15.

— Related on ThinkAdvisor:

Ginger Szala

@gingerszalaink

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.