Retirement Accounts Are Shrinking, Even For Young Workers

Inflation and economic conditions are taking a toll on younger workers. An article by Newsweek, citing the results of an employee financial wellness report, states that almost half of America’s youngest workers have had to dip into their retirement accounts just to get by.

The report found that 38 percent of employees overall have withdrawn money from their retirement accounts at some point, but that jumps to 46 percent for Gen Z workers. Even more alarming, most of these withdrawals were not for discretionary purchases, but to cover more urgent, unexpected emergencies like car repairs. 

Being young, Gen Zers should have time to build back a retirement nest egg, still many fear it won’t be enough. The article points out that almost 70 percent of Gen Z workers believe they will not be able to retire comfortably.

This illustrates the importance of the Social Security Expansion Act. The Seniors Trust is committed to improving Americans’ financial well-being through the passage of this landmark piece of legislation. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.