Yeah, there are a whole lot of people working low wage jobs, who are simply unable to put away any savings.
We recently moved across the state, and it has taken some time to find solid employment. My wife is currently a temporary part-time worker at the community college, and she is likely to lose her paycheck as they close the campus and move to online instruction. I am a part-time worker, but not temporary, although after I joined the company, they announced the intention to close a lot of their operations. So I will be out of a job in a few months, regardless.
In order to make our move, I needed to make a large early withdrawal from my retirement savings. We meet with our tax guy tomorrow and will find out how much we owe in taxes and early withdrawal penalties. It won’t be pretty. The only means we have to pay it is to make another early withdrawal, and pay the penalty again at tax time next year. It could carry into the next year and the year after that, depending on our employment situation. My entire retirement account could be obliterated inside of three or four years, and I’m nowhere near retirement yet. But we needed to move, we could no longer afford to live where we had been living, and the retirement account was the only way to make it happen. And then Covid-19 happens and just makes it all worse. So much for having some savings packed away. It is crystal clear to me how fragile one’s economic situation can be.