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The pandemic has taken a hefty toll on retirement security for many in the U.S.
About 17% of Americans said they’re saving less for retirement due to Covid’s impact on their finances, according to a recent survey by The Penny Hoarder.
And yet, nearly as many — roughly 16% — said they are saving more money thanks to the forced decrease in spending. The survey polled more than 1,000 adults in October.
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One-third of Americans who planned to retire say it will now happen later because of Covid, according to a study from Age Wave and Edward Jones.
While most savers recognize it is increasingly their responsibility to fund retirement rather than relying solely on a pension or Social Security, 43% worry about what will happen if Social Security runs dry, a separate survey by personal finance site MagnifyMoney found.
Already, the government has said the Social Security trust fund will run out of money sooner than expected due to the pandemic. An annual government report released in August estimated that could happen in as little as 12 years, CNBC has reported.
That less than rosy outlook threatens to shrink retirement payments and increase health-care costs for older Americans.
Low interest rates, higher inflation and ongoing market volatility pose additional problems for retirement security.
However, there are tricks for gradually increasing the amount you put away and a mix of assets that will offer some protection, as well, including Treasury inflation-protected securities, commodities and equities.
Most experts recommend meeting with a financial advisor to shore up a long-term plan. There’s also free help available through the National Foundation for Credit Counseling.