COVID-19, Unemployment, and Ultra-Low Interest Rates Challenge Older Americans

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"

Buyers’ Remorse for Student Loans?

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?"

More Seniors are in Debt: An Unintended Consequence of Low Interest Rates

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"

What’s the Difference of a Few Percentage Points for Retirement Savers?

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?"