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Is This The New Retirement Crisis?

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In today's episode of The Retire One Show,  we delve into the worrying trend of Americans changing their retirement savings habits due to inflation. Numerous studies reveal that a significant number of people in the US have reduced or even halted their retirement savings contributions. With TIAA reporting that 25% of workers cut back on retirement savings and a shocking 50% of US News and World Report survey respondents having paused their contributions in 2022, the future of retirement looks uncertain for many.

We also explore the alarming findings from the Senior Citizens League survey, which showed that 26% of people aged 55 and over depleted a retirement account in the first quarter of the year, up from 20% in the third quarter of 2022. Additionally, a staggering 49% of this group spent their emergency savings during the same period.

We also discuss concerning statistics and highlight the long-term consequences of pausing retirement savings, such as a 27% reduction in the final retirement pot for a 30-year-old who stops contributing for just five years. With 1 in 3 Americans cashing out their 401(k)s when switching jobs, these trends spell a challenging future for retirement.

In this episode, we also discuss the results of a study that examined the 401(k) leakage, revealing that 41% of participants cash out some dollars, with 35% of the total taking the entire amount. Shockingly, even earners with accounts holding at least $100,000 are opting for cash distributions. We'll discuss the distribution rules and explore alternatives to cashing out, ensuring that you're equipped with the knowledge to make the best decisions for your retirement future.

Tune in to this must-listen episode of the Retire Once Show and discover the true impact of inflation on retirement savings and learn how to better navigate these uncertain times.


Registered Representative of Sanctuary Securities Inc. and Investment Advisor Representative of Sanctuary Advisors, LLC.– Securities offered through Sanctuary Securities, Inc., Member FINRA, SIPC. –  Advisory services offered through Sanctuary Advisors, LLC., an SEC Registered Investment Advisor. – Theorem Wealth Management is a DBA of Sanctuary Securities, Inc. and Sanctuary Advisors, LLC. This communication has not been reviewed for completeness or accuracy, does not necessarily reflect the views of Sanctuary Securities, Inc. or Sanctuary Advisors, LLC., and is not a recommendation or endorsement of any product, service, or issuer. Third party posts do not reflect the views of Theorem Wealth Management or Sanctuary Securities, Inc. or Sanctuary Advisors, LLC., and have not been reviewed for completeness and accuracy. All further communications from this representative must be sent from and received by johnathan@theoremwm.com. For additional information, please refer to one of the following consumer websites: www.FINRA.org, www.SIPC.org.

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