For those nearing retirement, saving may be front of mind as the economy deals with a fresh challenge in the form of the coronavirus, which has caused the government to shut down many businesses to stem the spread.
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Even before new obstacles set in, many Americans were already struggling to save.
As previously reported by FOX Business, more than half of Americans said they did not have an emergency fund that would cover at least three months of expenses. And when it comes to longer-term saving, 37 percent of people said they had no plans to stash cash away for retirement.
Concerns may be exacerbated by the coronavirus crisis, which has eliminated a lot of gains in the stock market over fears of how not just the U.S. economy – but the global economy – will be affected.
The good news is that Americans can put away more money into employer-sponsored retirement plans in 2020 when compared with last year. For example, the 401(k) contribution limit was increased to $19,500 from $19,000.
But for older Americans – specifically those over the age of 50 – the so-called “catch-up” contribution limit, which allows them to stash away more cash than the average individual, was increased to $6,500 from $6,000.
In terms of savings benchmarks, by the age of 50, it is recommended that an employee with a 401(k) account has five times his or her salary saved. For a worker making $100,000, that means $500,000.
As previously reported by FOX Business, when it comes to the coronavirus specifically the Trump administration is considering a relief package valued around $1 trillion that includes a potential direct-cash payment to consumers. The checks could be valued at more than $1,000, a source familiar with the matter told FOX Business on Tuesday.