Older Adults Are Hit Hard by COVID-19—and Also Losing Jobs

May 22, 2020 / Amanda Chase, Horsesmouth Assistant Editor

The scale of the economic crisis caused by the coronavirus pandemic just came into clearer view with the release of the latest unemployment numbers. The unemployment rate among people age 65 and older quadrupled between March and April 2020 from 3.7% to 15.6%. By comparison, the overall unemployment rate tripled from 4.4% to 14.7%. From March to April, 1.2 million adults age 65 and older lost jobs, as did another 2.4 million people ages 55 to 64. Altogether, people 55 and older account for just under one fourth of all Americans who lost their jobs in April, which is proportional to their share of the workforce. More than 1 in 5 of the nearly 23 million Americans who are now unemployed are older adults (55+).

This surge in unemployment reverses years of steadily declining unemployment rates among adults of all ages. And in fact, more adults have continued to work into their older years over time, with labor force participation rates increasing more rapidly for those aged 55 and over, and particularly for those ages 65 and over, than for younger age cohorts. But now, with millions of older adults suffering job losses due to the economic downturn caused by the COVID-19 pandemic, they may be forced to dip into retirement savings or claim Social Security benefits before their full retirement age, resulting in lower payments permanently and undermining their future economic security.

Another major challenge is that people who lose their jobs often lose health insurance. Losing coverage in the midst of a pandemic is especially troublesome, particularly for those who may become seriously ill if they are infected with the coronavirus—which is more likely among older adults. Older adults ages 55-64 may be able to purchase COBRA from a former employer, purchase coverage in the marketplace, or enroll in Medicaid, depending on their individual circumstances. People ages 65 and older who lose employer-sponsored health insurance along with their jobs can enroll in Medicare if they had deferred enrollment while they continued to work, but this is not an option for younger adults.

Overall, these grim unemployment statistics reinforce the fact that the coronavirus pandemic is not just a major public health challenge, but also a threat to economic and retirement security for millions of older adults as well.

You can find the full article at Kaiser Family Foundation.

 

IMPORTANT NOTICE
This material is provided exclusively for use by individuals with an active license to the Savvy Social Security Planning Program. Use of this material is subject to the Social Security Planning Program Agreement and applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties express or implied are hereby excluded.

© 2020 Horsesmouth, LLC. All Rights Reserved.