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Retirement Rush

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Tuesday, June 29, 2021

The COVID-19 pandemic has caused a bit of a stir when it comes to retirement.

Many folks in America are finding that retirement is now on their doorstep. The ravages of the virus continue to plague us daily, but the after-effects are going to be around for a long time to come.

The idea of going back to work at all, after lounging about in comfortable gym gear for a year, is enough to shelve the idea of working through to 70. Life is short, and maybe a round of golf is preferable to putting on a suit and tie and commuting through traffic to an office every day of the week. However, for others, enforced retirement due to downsizing and layoffs or even companies closing down for good is not such a pleasant outlook either.

Experts now say that an estimated 4 million older workers in America will have left the workforce by October 2020. Some professions have been harder hit than others when it comes to people being forced into retirement. 28 percent of teachers feel they are more likely to retire early or change professions after the Pandemic. Health workers have also been struck with layoffs in certain sectors of the industry as elective procedures and non-emergency doctor and dentist visits getting postponed indefinitely over the last year.

The vast majority of Americans have under $1,000 saved for retirement and half of all Americans have nothing at all put away. 34 percent have zero savings of any kind, not just for retirement. The median for U.S. families is just $5,000, and the median for families with some savings is $60,000.

Women have been disproportionately affected by the Pandemic. 275,000 women left the workforce in January 2021. Compare that with just 71,000 men. Overall, nearly 2.4 million women have exited the workforce since last February, compared with less than 1.8 million men. The pandemic has also forced many women to choose between caring for their children who are now stuck at home as childcare options disappeared and home and virtual schooling became the norm. Taking an earlier retirement than originally planned for is scary as it will affect retirement savings, unfortunately, many are finding it’s their only choice.

2021 is already proving to be a volatile year. Planning for the future is the only way to make sure you have any security long term. Saving may seem tough at times but it’s the only way to safeguard your lifestyle as time goes by. 

 

 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

 

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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