For Millions of Americans, the Pandemic Will Make Retiring Harder

The New School's Teresa Ghilarducci says older Americans are especially vulnerable to the economic fallout from the COVID-19 pandemic, which threatens to derail retirement for millions, reports CNBC . She forecasts that the pandemic will force another 3.1 million older workers into poverty in their retirement, with many forced to choose between their health and their financial needs. With the unemployment rate climbing faster for older workers than almost any other group, Ghilarducci says it is unlikely many will find employment or return to the workforce quickly. "That means they'll draw down on their retirement savings, they may go into debt, and they'll also apply for Social Security earlier, forgoing increased benefits," she explains. "As a result, people who are middle-class workers now will be poor or near-poor retirees for the rest of their lives." Ghilarducci attributes the high numbers of unemployed older Americans — especially older women — to the loss of jobs in education, home healthcare, and other businesses and industries forced to close by the coronavirus. Although she admits that ageism plays a part in older Americans' inability to return to work, Ghilarducci says the epidemic highlights the very real risk of older employees facing much more dire health hazards and the need for employers to make special accommodations. She concludes that the pandemic has laid bare a broken retirement system, and its remedy must include reducing the Medicare age, raising Social Security benefits by $200, and a universal pension system.