Survey Show Many Americans Will Delay Retirement Due To Investment Losses
The economic downturn has hurt many Americans and with equity markets falling more than 40% off of record highs, for many that translates into a comparable loss in principal in their retirement investments. Those losses will force many Americans to put off retirement to make up for those losses.
The survey indicates that workers are paying down debt, cutting spending on restaurants and entertainment and planning to work past their planned retirement ages.
The survey completed in December shows that 54 percent of workers will delay retirement by at least a year because the economy has sapped their finances. Nearly one-fourth said they will need to work more than five years.
The survey shows that as the economy worsened in the last half of 2008, many workers came to the conclusion that they would be forced to work past the traditional retirement age of 67 just to maintain their lifestyle and to keep health insurance.
Another worry is that corporate America has started cutting retirement benefits in an effort to cut costs. We have already seen a number of companies announce that they are eliminating 401k matching.
Rising unemployment is another growing concern for many Americans, the economy lost an estimated 2.6 million jobs last year and it doesn’t look like the unemployment picture will improve anytime soon. Those seeking employment may have to settle for a job that pays less than their previous position.
Some may also choose to retire on time and live at a lower lifestyle than what they were accustomed to. The current recession could last for quite awhile and many Americans have difficult choices ahead.
