April 5, 2020
Could Covid-19 Pandemic Upend Senior’s Retirement Plans?
A new study by economic professors Olivier Coibon of the University of Texas at Austin, Yuriy Gorodnichenko of the University of California at Berkeley, and finance professor Michael Weber of the University of Chicago’s Booth School of Business shows a troubling trend that they gleaned from a series of surveys conducted over January and April of this year. Utilizing the Nielsen Homescan network, they were able to survey just under 100,000 households for two surveys, one in January and another in early April- roughly before and during the covid-19 crisis, respectively.
The responses that they received were alarming: the job loss rate that the responses indicated were higher than what the new unemployment claims suggest. But more alarmingly, the data shows that the employment to population ratio has dropped a staggering 7%, which they note is far above the 3% decline from 2008-2016.
When they asked those who indicated that they lost their job and were not looking for one currently the reason for the change, the only response that increased between the pre-crisis survey and the survey from early April was “Retiree.” The professors suggest that early retirement can nearly perfectly account for the reduced labor force participation rate for both those surveyed who were previously employed as well as those who had previously been looking for work, but are no longer.
In our previous post, Why So Many American Seniors Are Putting Off Retirement, we discussed a survey by Provision Living that looked into why so many seniors were working into their retirement years. Remarkably, at the time over 20% of the US population over age 65 was still working, and 62% of those individuals were doing so for financial reasons. This new trend resulting from the Covid-19 crisis will clearly upend the retirement planning for many seniors in that situation, unfortunately.
One thing that any senior who finds them in this difficult situation in this difficult time can do is look into a life settlement. This powerful financial tool can tap the market value of an existing life insurance policy, and the value provided through a life settlement transaction can go a long way to help get a senior back on a path to a more secure retirement. You can get an instant estimate of the value of your life insurance policy by visiting the Q Life Settlements life settlement calculator. You can also call Q Life Settlements at 866-679-9410 or email us email@example.com to discuss your situation. Our team is available and ready to explain to you all that you would want to know about life settlements.
Author: Steven Shapiro
Steven Shapiro is the founder of the Company and also the President and CEO of Q Capital Strategies, LLC and Life Settlement Solutions LLC. Steven has been active in the life settlement industry for the last 18 years. In addition to his life settlement experience, Steven has expertise in strategic consulting, investment banking advisory services, and private equity investing. Steven holds a B.A. degree in economics from the University of Pennsylvania and an M.B.A. in finance and entrepreneurial management from The Wharton School of the University of Pennsylvania. Steven is also the immediate past Chair of LISA (having previously served as Chair), the Life Insurance Settlement Association, the oldest and largest trade organization in the life settlement industry.