The coronavirus pandemic has certainly caused financial stress for many Americans. This financial stress should be temporary for many people. However, for pre-retirees, it is much more serious as not only are they dealing with the same financial stress, but they also have worrries about their jobs being around in the future. Are you going to be forced into early retirement?
Every year, many people are forced into an early retirement. In fact, according to a data analysis conducted by ProPublica and the Urban Institute, 56% of workers over age 50 have been fired from a job, been pushed out of a job at least once, or have been forced to retire because of an injury or illness or a family obligation. Now because of the virus pandemic and economic shutdown, these stats are expected to rise substantially.
More than 30 million Americans have filed for unemployment since mid-March, and millions more are expected to do so over the coming weeks. And according to data from AARP, one-third of the U.S. labor force is 50 or older and over 6 million people in that demographic work in retail and food services, which are industries that were hit very hard by lockdown measures. It is unclear how many of these jobs will return once the economy starts to recover. So, for some older Americans, that means they may be forced out of the labor force years earlier than they had anticipated.
So what should you do if you think you may be forced into early retirement? Well, you very well may need to rethink your retirement plan for both the short and long term. There are several factors that you will need to consider and address, and some actions you will need to take. To learn of the factors and find out what adjustments you will need to make, visit The Prepare Institute website and find an upcoming education retirement course in your area.
Content is for educational and informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.