Times are tough and some Texans are either withdrawing money from their retirement accounts or contributing less. Troy Sharpe, CEO of Oak Harvest Financial Group, says they are stealing from themselves. “We see that many people need to access their retirement accounts earlier than usual. This has long-term negative effects. We are talking about potential loss of interest, tax deferrals and compound interest in the next few years.”
Sharpe says they will likely have to postpone their retirement. He suggests that while they can still work, they should do a sideline or improve their skills online or at a community college to get a better job.
According to a Bankrate survey, most of these people are still working. Troy Sharpe explains why. “Penalties limit access to that money until you are 59.5 years old. In times of uncertainty, people tend to invest less in retirement and put money in a ‘buffer’ because we don’t know when it will Pandemic will end and times will get better. “
Sharpe says that with no future income, they are actually stealing from themselves and will likely delay their retirement. Listen to Troy Sharpe and The Retirement Income Show on Sundays on KTRH.