Alarming Survey Shows People Are Digging Into Their Retirement Due To Pandemic
1,239 Americans were surveyed by MagnifyMoney, and they were asked if they had gone into their retirement accounts or planned to do so as a result of the recent pandemic. 30 percent of those surveyed said that they had indeed withdrawn funds from their retirement accounts due to COVID-19, and the continuing financial crisis. Another 19 percent of Americans said it is their plan to use their retirement to help survive financially during the crisis. The pandemic has affected the confidence many Americans have about their future and their retirement. Many who have lost their jobs are uncertain about the future.
This is not good. Thirty percent of survey respondents report that they withdrew money from their retirement accounts due to the pandemic. An addition 19 percent hadn't, but reported that they plan to do so. pic.twitter.com/v7Gq1PdhmF
— Michael R. Strain (@MichaelRStrain) May 15, 2020
According to an April 23 report by Forbes, the Employee Benefit Research Institute conducted a survey in March to gauge the confidence people had in their ability to retire after the coronavirus. The survey found that 47 percent of people surveyed felt that they would have enough money to retire comfortably. On the other hand, 67 percent surveyed said that they believed they could live comfortably when they retire. Your confidence, or lack thereof, seems to depend on your employment status during the pandemic.
54 percent of Americans have experienced a negative change in their income since the pandemic began. Despite this, overall retirement confidence remains steady. The EBRI report stated, “The stability in retirement confidence [overall] is surprising to see given the current health and economic crisis impacting Americans.” The EBRI does point out that they did not survey anyone in April. They stated, “In March, people were still talking about how [COVID-19] will go away.” They admit that the results may have been very different if they had surveyed in April.
As the pandemic continues we will see if retirement confidence holds or falls.