1 in 10 to Retire Early Due to Pandemic, Finds September SimplyWise Retirement Confidence Index
Americans in their 50s and 60s are among the hardest hit by the pandemic, according to the latest SimplyWise study. Many are being forced into early retirement by health concerns or employers, while others lack sufficient savings and now have to postpone long-awaited retirement plans. Of those in their 50s, 61% are unable to live off their total savings for more than three months.
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The September 2020 SimplyWise Index found that 58% of all Americans are more concerned about their retirement today compared to a year ago. Other key findings from the bi-monthly report included:
- 15% of people who lost their job due to COVID-19 are now planning to retire earlier than anticipated—and 1 in 10 people in their 50s and 60s are now planning to retire earlier than expected.
- 58% of people in their 50s are not confident they’ll be able to maintain their same quality of life in retirement. 65% are worried Social Security will be dried up by the time they retire
- 30% of people in their 50s saved $0 for retirement in the last year—and 43% of them couldn’t last more than a month off their savings.
- 27% of Americans are now considering tapping their 401(k)—a pandemic high.
- 45% of Hispanic, 39% of Black and 34% of White Americans couldn’t last a month off their savings.
- 36% of Americans think the economy is going to get worse in the next 6 months. 51% believe it’s likely the stock market will decline 20% over the next 6 months.
- 63% of Americans feel confident in the future of Social Security if Biden is elected. 44% feel confident if Trump is re-elected.
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The bi-monthly study was conducted as an online, random sample survey of 1,154 Americans ages 18+ between September 8-10, 2020 to understand today’s environment for savings. It is part of SimplyWise’s ongoing efforts throughout the pandemic to help Americans maximize their savings and retirement benefits, particularly given the COVID-19 closures of Social Security offices.
“Navigating these uncertain times for ourselves and our families requires staying educated about the changing regulations and our options for saving and retirement today. This includes knowing what you’re owed in earned, spousal or survivor Social Security benefits,” says Sam Abbas, CEO of SimplyWise, a fintech empowering better decisions for modern retirement.
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