Graceful retirement is the dream of almost every working person and setting aside 15% is good enough to see one through this dream. The COVID-19 pandemic has plunged the world into a state of uncertainty and it is thus critical to work smart.
Bleak reports have been coming out every dawn showing the rising unemployment rates in the US. The lockdowns have been executed shuttering business activities and a substantial number can’t afford house rent in a first world country. This is pretty shocking as efforts continue to be made to combat the deadly pandemic.
The U.S. Bureau of Labor Statistics on April 3 gave out reports indicating the move by the nonfarm employers to slash 701,000 jobs in March. This was a drastic move that resulted in unemployment rising by a margin of about 4.4%. The parties that felt the brunt of it included the hospitality and the leisure workers. It is an industry that has witnessed over 459,000 lose their jobs.
construction workers, retail trade, social assistance, health care, professional and business services are the other segments that have been hard-hit by the effect of the deadly virus.
Many people are starting to realize the great need to embrace the financial defense mode in a bid to survive the difficult times. This is a mode that is hugely characterized by the hoarding of cash through the making of pretty low debt payments. In other cases, it might involve the cutting down or even pause the 401(k) contributions. The making of the 401(k) contributions is a great idea, but through these times of uncertainty, it is understandable for anyone to feel nervous making them.
The recent legislation on borrowing one’s retirement savings may have impressed quite a huge deal of people. That was because of the government initiative outlining that people would do so without fears of any sort of penalty.
Different people seem to be having different opinions regarding whether or not the current dimes are dire enough to make one cut down on the contributions. Numerous indicators can help one make a proper determination.
One may, for instance, consider whether or not his or her income has declined. Another way would be to consider whether or not one is falling behind on his or her credit debit card. The other thing would also be to carry out some sought of soul searching to identify whether or not one risks losing his/her employment entirely.