Times are tough and some Texans are either taking funds out of their retirement accounts or contributing less. Oak Harvest Financial Group CEO Troy Sharpe says they are stealing from themselves. "We're seeing a lot of people having to tap their retirement accounts sooner than they otherwise would have. This does have long term negative impact. We're talking about lost interest potential, tax deferral and compounded interest over the next several years."
Sharpe says they will probably have to postpone their retirement. He suggests while they can still work, they should work a side gig or upgrade their skills online or at a community college in order to get a better job.
A Bankrate survey says most of these people are still working. Troy Sharpe explains why. "Penalties restricts you to access that money until you're 59 and a half. So during times of uncertainty people tend to put less towards retirement and put money into a "cash cushion" because we don't know when the pandemic will end and times will get better."
Sharpe says they are actually stealing from themselves with missed future income, and will probably delay their retirement. Listen to Troy Sharpe and The Retirement Income Show Sundays on KTRH.