COVID-19 has thrown a wrench in retirement planning. Rising unemployment, a volatile stock market and economic uncertainty are jeopardizing the ability of many families to plan for the future. However, even before the pandemic, saving for retirement was not easy.
According to a U.S. Federal Reserve report from 2018, one in four non-retired households had no retirement savings at all, and more than 40% of non-retired adults said their retirement savings were not on track. Even for those households with the means to save, employers shifting from defined benefit plans (where they completely pay for and guarantee retirement income) to defined contribution plans (where employees contribute, participation is voluntary and there are no guarantees) made putting money away more complicated.
