[Forbes] The Covid-19 recession, like all recessions, threatens the wealth and retirement security of millions of workers. Job loss prompts people to stop saving, raid their nest eggs or go into debt by falling behind on their rent and mortgage payments. Most workers nearing retirement had insufficient retirement savings even before the recession, and many planned to delay retirement and work longer to save more. But the Covid-19 pandemic and recession made that hopeful plan to work longer even more difficult.
Older workers are facing more joblessness — and even dropping out of the workforce entirely. Almost half of low-income workers did not have any retirement savings to begin with, and the COVID-19 recession is likely to short-change millions of workers’ retirement savings.
Because Covid-19 is a retirement story, immediate policy support is still necessary for older workers who have lost their jobs, as well as systemic reforms to end retirement insecurity for generations to follow. The former includes reinstating early withdrawal penalties (and providing real support to those facing financial difficulties instead), lowering the Medicare eligibility age, increasing and extending unemployment benefits, and enforcing anti-age discrimination regulations.
Much-needed systemic reforms include expanding Social Security and creating Guaranteed Retirement Accounts that give workers access to a secure and accessible way to save for their retirement and supplement their Social Security benefits.
Full story: Forbes »