COVID-19 has challenged the entire world, including retirees and those approaching retirement. People age 55 and over are more likely to fall ill from COVID and much more likely to die from it. They are also more likely to suffer financially. Since February, 2.5 million older Americans (age 55+) became unemployed. An additional 1.9 million left … Continue reading "COVID-19, Unemployment, and Ultra-Low Interest Rates Challenge Older Americans"
The COVID-19 pandemic is unprecedented for most people today, but not historically. Tragically, in the United States, between 500,000 to 675,000 people died from the 1918 Spanish Flu, with about 28% of the population being infected. Hopefully, responses like social distancing blunt COVID-19’s human impact, but it has already caused tremendous economic pain. For those … Continue reading "Life Insurers: Resilient And Strong For Americans"
Every day, 10,000 Americans turn 65 years old. For much of the 20th century, the 65th birthday meant retirement. But not in 2020, according to two recent articles. A CNBC.com story noted that a majority of workers (54%) said they expect to continue working after age 65, including 14% who never plan to retire. And a Wall Street Journal … Continue reading "Could The SECURE Act Enable Fewer People To Work Past Age 65?"
The media routinely report that student loans are a major burden on families and young people. Several presidential candidates have even turned education-related debt into a campaign issue, pushing for across-the-board debt forgiveness. Is education-related debt really that much of a challenge? How exactly does it impact borrowers? Consider some facts: 44.7 million Americans have … Continue reading "Buyers’ Remorse for Student Loans?"
When interest rates are especially low—like today—Americans have a greater incentive to borrow and spend. The reasons are many. Buy a car, a home or a new appliance. Americans also borrow to pursue more education or take a vacation. All this contributes to a growing economy. From the 1980s until about 2010, interest rates were on … Continue reading "More Seniors are in Debt: An Unintended Consequence of Low Interest Rates"
As previously discussed, the United States is in a low interest rate environment. Low interest rates negatively impact people saving for retirement, including those who invest in fixed-return assets (assets that pay people a set interest rate). They can have a particularly severe impact on retirees and those nearing retirement. But how much do a … Continue reading "What’s the Difference of a Few Percentage Points for Retirement Savers?"
[First in a series of IMPACT posts examining the impact of a prolonged low interest rate environment] Since the 2008 financial crisis, much of the world has lived in a low interest rate environment. Low interest rates may be justified from a monetary perspective. But retirees and those in the later stages of their careers … Continue reading "Low Interest Rates Equal High Costs for Retirement Savers"