How Widespread Unemployment Might Affect Retirement Security
The brief’s key findings are:
- Before the virus, half of households were at risk of falling short in retirement.
- The virus-related surge in unemployment has likely increased the share of households at risk from 50 percent to 55 percent.
- And this increase does not capture the impact of lower asset prices and interest rates.
- In addition, even the unemployed who were already at risk before the pandemic are in worse shape now as they face a larger savings gap.
- The results stress one more reason to get people back to work quickly: the shorter the unemployment spell, the less harm to retirement prospects.