More than half of Americans are earning half or less than half of their pre-pandemic income, and 31% have lost their entire income, a FlexJobs and Prudential survey has revealed.
Fidelity reports that the average 401(k) plan balance was up 14% between the start of April and the end of June.
The break will apply to 401(k) plans that sign up with the company between August 1 and December 31, 2020.
The goal is to help sponsors address COVID-19’s impact.
Retirement Equity Lab says if these exits continue, they will increase old-age poverty and worsen the recession.
The nearly 4,000 withdrawals totaled almost $100 million.
But those who fall short on saving are experiencing financial stress.
American Century surveyed retirement plan participants at the outset of the pandemic, when market volatility was extreme.
Two deals, by Morgan Stanley and Franklin Templeton, stand out, according to PwC.
But the chief equity strategist at Nuveen expects it to be short-lived.
They warn that there could be a market pullback when second-quarter earnings start being reported and that the coronavirus’ legacy could be $1 trillion in business activity never returning.
We were already in a new normal of very low interest rates before the coronavirus pandemic struck. It now seems even less likely that the old rate regime will re-establish itself any time soon.
Sales of new plans are expected to decline throughout the rest of 2020, with small plans affected the most.
Only 5% of respondents to a new survey have withdrawn from their retirement accounts, but another 7% said they plan to do so in the coming weeks.
The Internal Revenue Service is expanding the categories of individuals eligible for special loans and distributions and providing updated guidance on the tax treatment of these distributions and loans.
One economist says there is so much noise in the data that it’s hard to assess where we are right now, let alone where things are going from a macroeconomic perspective.