Here is What the Government Should do to Meet the Needs of People who are Nearing the Age of Retirement
For people who work full time and are nearing the age of retirement, coronavirus is not only a threat to their finances but to their health also. Although the pandemic is a threat to everyone, the economic fallout from the virus will affect the elderly more than the youth as they won’t have any time to recover.
It will take years for people to get back on track with their individual investments, and for people who are nearing the age of retirement or are being retired involuntarily because they cannot get any other job, it will be too late as their retirement will be marked by deprivation.
Everyone knows that the elderly have been deprived of receiving any assistance from the government, and if the government does not see to their needs in the next stimulus package, these people will fall back into poverty. To save retirement, these policies should be included in the next package.
Expansion of Unemployment benefits is the need of the hour
According to an estimate, more than 30% of the people will face joblessness in the coming month, which means that more than 12 million older people will lose their jobs. When the businesses get open, the elder will be at a greater disadvantage than their younger counterparts because jobs will be less paying and more demanding.
According to a study, the jobs will pay less than 20% of the previous stipend of the same job right now. So, the elderly need unemployment benefits more than the youthful, and the federal government should look to their needs.
Increment of social security benefits by $200
There was no help offered to the seniors other than offering them a check worth $1200 in the initial three stimulus package. Due to the corona outbreak, the seniors have been left with nothing more than their social security because the employers don’t have to provide a pension plan. Since social security is their only hope to live their lives in peace, the benefits must be increased for these people in order to maximize their chance of living a stress-free life.
Reverse the policy and allowing 401 (k) withdrawals without penalty
The CARES act suspended the financial penalties for those who were withdrawing money form 401 (k) and other IRA accounts. This sounds like a good thing, but not if we take into account its long term impacts. The penalty is there just so that people couldn’t withdraw these funds to meet their short term needs and sacrifice their daily needs for long term easiness. Rather than sacrificing their future, the policymakers must find a new way to compensate workers other than the extended unemployment benefits.
More in Retirement
Here’s How You Can Save Your Retirement Fund From Collapsing as the Stock Market is Crashing
If you retired in 1982, chances are that your savings were divided into stocks and bonds, and if you took out...April 10, 2020
A 7-Step Plan to Keep Your Business Afloat Through the Pandemic—According to a Risk Management Expert
The escalating coronavirus pandemic has been rapidly affecting businesses all over the world. Most have been forced to scale back with...April 7, 2020
Worried You Can’t Pay Rent Amid the Pandemic? This Might Help You Out
Back in February, 28-year-old Ximena Kilroe, together with her husband and a roommate, thought they found the perfect home to rent....April 6, 2020
Let’s See what the Fuss about Jennifer Love Hewitt’s New $6 Million Pacific Palisades Home Is?
Jennifer Love Hewitt just bought a new home in Los Angeles. The home is brand new and is bought at the...April 3, 2020
DJ Khaled’s Over-the-Top Florida Mansion Has a New Owner
It’s a “No Brainer” that American DJ, producer, and record executive DJ Khaled is one of the most over-the-top celebrities right...April 2, 2020
Julia Roberts Sells One of Her Three Malibu Homes for $8 Million
Pretty Woman star Julia Roberts has grown a collection of real estate properties in the same area in California for the...April 1, 2020
Here’s How Coronavirus is Driving Mortgage Interest Cuts
The global pandemic coronavirus has caused a major disruption to the economy, bringing Australia to another recession after almost three decades....March 27, 2020
Should You Use Your Business Credit Card Amid The Coronavirus Pandemic? Here Are 3 Tips to Back You Up
There’s no question that public safety should come first before profit, but this can cost small business owners some serious financial...March 26, 2020
Acquiring the Right Business Loan Might Be Tricky, Here’s Why
Entrepreneurs should be more prepared while applying for a business loan. They should know the right questions to ask before acquiring...March 24, 2020