Yet another headline proclaims what we all know so well. Reuters reports that Older Americans postpone retirement as economy sags.
With the bleak economic news that is so widely reported, it is not surprising that people try to minimize their risks.
A December survey by the senior’s advocacy group AARP showed 57 percent of Americans aged 45 or over who lost money in their investments over the past year and who are working or looking for work expect to delay retirement. One in four have already postponed plans to retire, the survey showed.
As the experts report people are losing their assets that they assumed would be there to fund their retirement.
“This combination of forces creates a triple whammy for older people. The stock market is plunging, jobs are hard to find, and home values are sagging. This creates a really difficult environment in which to contemplate retiring,” said Richard Johnson, an expert in seniors and retirement at the Urban Institute, a Washington think-tank.
Assets in retirement accounts have lost $2.8 trillion, or 32 percent of their value, as of December 2, 2008, compared with September 30, 2007, according to the institute.
Since there is no sign of any early turnaround, one can assume that the proportion of people delaying their retirement will go even higher. Thankfully more and more are fitter than seniors used to be so they are better able to make this choice.
Footnote: If you are interested in books on Retirement, then why not visit the Retirement section of the Money Bookstore.