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Workers Saving Less, Dipping Into Retirement Due to Economic Pressures, Survey Says
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Key Points
- A recent survey found that most workers have begun saving for retirement, but economic pressure makes it difficult for them to continue saving habits.
- Many workers have stopped saving for retirement, reduced monthly donations, or made money from their accounts to cover essentials or achieve financial goals.
- While shifting financial focus to retirement accounts can have a negative impact on workers, many have been able to make up for the differences.
Many Americans have immersed themselves in retirement accounts or cut their contribution to burdening essentials due to high cost of living and more than half of workers are still recovering from the pandemic.
More than eight out of 10 employed workers are Save retirement At the median age of 26, Median Family saved $82,000, according to a survey conducted by Transamerica Retirement Research Center (TCRS) earlier in March.
However, economic pressures make it difficult for many workers to continue to save habits. As inflation Increased cost of living, 72% of workers said they have taken steps to address financial pressures caused by rising inflation, while 56% of respondents are still recovering from the pandemic.
Economic pressure has caused some to stop savings and retire
“Today’s workers are trapped in rocks and hard places. They are traversing economic disruptions, fragile job markets, and the high costs of daily life – while expecting self-sufficient Retirement income Compared to previous generations, “according to TCRS President Catherine Collinson.
These pressures have prompted many workers to stop saving or exit retirement accounts in various ways. According to a Transamerica survey, 37% of people hired their retirement funds, such as loans that violated their retirement balance or took Earlyeven Suffer, exit.
Another survey released by the principal of the financial company in March found that 28% of workers have withdrawn or withdrawn Retirement Account Loanusually pay basic expenses, such as down payments on a house or paying for work losses. This is most likely to happen in households who earn $200,000 or more per year.
Additionally, the main survey found that 39% of people reduced their monthly contributions, while 20% stopped saving retirement entirely.
Suspension or withdrawal of funds does not always harm retirement accounts
However, not everyone who transfers financial priorities from retirement faces long-term consequences.
The principal said in the survey that 78% of those who had completely stopped saving retirement were able to start over again later.
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