The Havoc of the Pandemic on Your Finances

 

A new survey indicates many Americans believe the pandemic has seriously altered their financial situation, which may force them to delay their retirement or not be able to retire at all.    

When news of the COVID-19 wildfire started spreading out of control across the country, many businesses were forced to shut down. As a result, millions of us lost our jobs. (I was one of them). Even though unemployment benefits were made available it didn't prove to be enough to make ALL ends meet for some families.  When you're trying to live off of $600/week with more than $3000/month in household expenses, it can be more than challenging.  Meanwhile, GOP lawmakers were busy complaining about how some people were making more money by collecting an unemployment check than they did on their jobs. (Perhaps if they raised the minimum wage to something people can actually live off of, no one would give a damn about unemployment!)  

According to the survey, 1 in 5 people say the pandemic has forced them to delay their retirement or no longer retire at all.  The study also found that nearly 30 percent of Americans have saved less or stopped saving for retirement all together because they lost their job or another reason.  Nearly 40 percent say they have or will likely withdraw money from their retirement plan.  

The survey also reveals the fact that younger adults have struggled with navigating their finances the most:  62 percent of millennials and 51 percent of Gen Xers say the pandemic has made their finances more complicated and is forcing them to re-think the priorities in their lives.  On the other hand, just 27 percent of baby boomers say they are facing financial challenges.

In another survey conducted by Pew Research, the picture was even more bleak:

1 in 4 adults say they have trouble paying their monthly bills. 35 percent of adults ages 18 to 29 and 30 percent of those ages 30 to 49 say they have had trouble paying their bills. This compares with 22 percent of those ages 50 to 64 and 10 percent of those 65 and older. 

1 in 6 adults say they have borrowed money from family or friends or gotten food from a food bank. 

Blacks make up 40 percent of those who say they used money from their savings or retirement to pay monthly household expenses, compared to just 29 percent of whites.

28 percent of Blacks said they had problems paying their rent or mortgage, compared to 11 percent of whites.   

Some economists are saying it could take up to four years to fully recover from the pandemic.  What do you think?  Do you think we'll ever fully recover?