Job loss during COVID-19 on early retirement withdrawals: A moderated-mediation analysis

This study explores the impact of COVID-19-related job loss on early retirement withdrawals, highlighting the roles of financial hardships, subjective well-being, financial knowledge, and emergency savings. Drawing from 2929 respondents, the research identified that job loss increases early withdrawals, both directly and through financial hardships and well-being perceptions. Notably, individuals with greater financial knowledge and at least 3 months of emergency savings experience less negative impact from job loss. Our findings emphasize the vital role of employers in offering workplace financial education and promoting emergency savings. This aligns with the SECURE 2.0 Act's strategies and underlines the significance of financial readiness in buffering against the economic fallout of unexpected events like the COVID-19 pandemic.