40% of Older Workers Delaying Retirement by at Least 4 Years says Report

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A new survey from the Center for Retirement Research at Boston College found that 40 percent of individuals 45-59 expect to retire later than they had before the downturn, with most of the respondents intending to work an additional four or more years before retirement.

The report Workers’ Response to the Market Crash: Save More, Work More surveyed 1,317 individuals age 45-59 on how the stock market crash of 2008 has affected their retirement planning. These workers are heavily dependent on 401(k) plans, as opposed to traditional defined benefit pensions, as a source of retirement income. During the economic downturn, these plans lost about one-third of their value. Even before the crash, many older workers lacked the assets needed to enjoy a comfortable retirement.

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Other findings from the survey:

  • Two-thirds of workers age 45 to 59 report less retirement savings than they had before the crash.
  • More than a quarter reporting a level of distress in response to the downturn equal to or greater than that caused by the 9/11 terrorist attacks.
  • About 40 percent expect to retire later than they had before the downturn, most of those who intend to work longer are delaying retirement by four or more years.
  • Two- thirds of respondents reported no change in how much they save for retirement in 401(k)s, IRAs, or other accounts.
  • Nearly 60 percent reported that they are spending less (which is equivalent to saving more if income is unchanged).

Workers’ Response to the Market Crash: Save More, Work More?

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  • The survey is extremely valuable and shows the continued wisdom expressed in creating the HECM program. No doubt if most of those surveyed understood HECMs, survey results and the outlook expressed would be different. This lack of understanding and the level of misunderstanding provide us with opportunities to expand our businesses in the years to come.

    We live in a dynamic economy filled with ups and downs. Even our pension system is much more diversified than reflected in the article. For example, some defined benefit plans have 401(k) accounts attached to them. A few
    401(k) participants responded early enough in the downturn that they have actually done quite while some defined benefit plans were terminated as a result of the impact of the economic downturn on defined benefit plan sponsors resulting in participants not accruing the additional benefits they had anticipated.

    Since this is a survey it is not designed to present verifiable evidence or provide guidance for retirement. It simply represents the outlook of participants at the time it was taken. However, it confirms what most of us believed is the current outlook of those in the age range surveyed and helps in addressing the perceived retirement needs of those in that age range.

  • I read last week that Social Security is under more stress because more boomers are collecting at a younger age.These may be the people who do not have the option of continuing to work. Maybe the subjects of the above report are too young to collect. It still shows the obvious need for rm's.
    <Ahref=”http://www.fhareversemortgagesofsouthflorida.com>reversemortgagessouthfloridaFHAhud

  • I read last week that Social Security is under more stress because more boomers are collecting at a younger age.These may be the people who do not have the option of continuing to work. Maybe the subjects of the above report are too young to collect. It still shows the obvious need for rm’s. nreversemortgagessouthfloridaFHAhud

  • My father worked until he was 77, not because he had to, but because he wanted to. I plan to work past 80, again, because I want to.

    I don't want my brain cells to atrophy.

  • My father worked until he was 77, not because he had to, but because he wanted to. I plan to work past 80, again, because I want to. nnI don’t want my brain cells to atrophy.

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