Has the Pandemic Impacted Retirement Security?
February 8, 2021
With millions of Americans out of work and many households tapping their retirement savings to get by, it would make sense that retirement security outlooks would have deteriorated last year. However, a recent study from Boston College’s Center for Retirement Research has found a minimal impact.
According to the study, 51% of households with workers between the ages of 30 to 59 are at risk of being unable to maintain their standard of living when they retire. That’s up from 49% in 2019.
Despite the massive impact of the pandemic, the increased risk was relatively modest. Economists from Boston College note that rising values and stock prices have offset some of the impact of high unemployment.
The risk level has floated around 50% in the years since the financial crisis, and researchers note that, despite the pandemic, the biggest issues facing retirement security remain longer life expectancy and the delay to age 67 to receive full Social Security benefits for those born after 1960.