The COVID-19 pandemic is jeopardizing financial security for the next generation of retirees.
Does that include you?
What economic repercussions are likely to follow the pandemic?
How does that impact your investments, benefits, and retirement opportunities?
So glad you asked!
Back in 2008, the Russell 3000 index plunged 39 percent.
So what? As a result, the value of US retirement accounts fell by 24%…
Erasing $2 Trillion of retirement savings! Yikes.
So far in 2020, the Russell 3000 index has already fallen by 25 percent…
Erasing $3.8 Trillion of retirement savings.
Employee contributions to 401(k) plans could shrivel.
In just a few weeks, over ten million workers have filed for unemployment.
While laid off, workers can no longer contribute to their 401(k) plan.
Contributions will continue to plummet.
Employers might stop matching 401(k) contributions.
This is a quick way for employers to cut business costs, slimming down their employees’ contributions.
In 2008, hundreds of employers suspended their 401(5) matches altogether.
Active workers might be forced to dip into savings early
Emergencies often drive people to withdraw from their retirement funds.
Pensions may be at-risk.
Employers are known to terminate their pension plans when low on cash and unable to meet their hefty financial obligations.
Workers may retire early.
In 2009, when unemployment spiked, so did Social Security claims.
These beneficiaries who begin withdrawing early receive 29% less money every month than if they waited until they were 66.8.
When reaching your 80s, those financial losses can dramatically impact the quality of care you’re able to afford and receive.
Social Security’s financial outlook could deteriorate
Even before COVID-19, Social Security was projected to exceed revenues by 2020 (and for every subsequent year in the future).
In other words, Social Security’s trust could run out by 2035!
Beneficiaries could see upwards of 25% cuts to their monthly payouts in the coming years.
You worked hard for your Social Security benefits.
And perhaps you even worked harder for your financial investments.
It’s more critical than ever to safeguard them properly!
Learn and grow with us.
Develop custom retirement strategies that will protect you.
Plan a virtual consultation with Abe and Shelly Abich!
Voted Loudoun’s #1 Financial Planner 2 years in a row.
Or, attend one of our upcoming webinars or online workshops.
You aren’t in this alone. We’re here to help.