Older Americans postpone retirement as economy sags

[babylonsister]

Older Americans postpone retirement as economy sags
Sat Jan 17, 2009 9:02am EST

By Andrea Hopkins


CINCINNATI (Reuters) - Miriam Gorman wanted to retire more than a year ago, but steep financial losses in her retirement savings mean the 71-year-old bookkeeper now plans to work on indefinitely.

"I would have preferred to retire at the end of 2007, and then I was thinking at the end of this year, and now maybe it's next year. I really don't know," said Gorman, who's been with an advertising company in Bethesda, Maryland, for 15 years.

Across America, older workers are postponing retirement plans, dismayed by huge losses in the value of the investments they had depended on to fund their retirement. The U.S. recession has compounded the problem, with home values too low to provide the nest egg many seniors need and interest rates on safer assets close to zero.

"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.

more...

http://www.reuters.com/article/topNews/idUSTRE50G1PD20090117

[LiberalEsto]

1. Retirement?

What means this word?

[patrice]

2. Postpone? This particular Boomer is going to have to work until I drop.

This last eight years have insured the financial necessity of that.

[mnhtnbb]

3. Actually, hubby is going to semi-retire sooner than planned, thanks to

layoffs/lack of funding for county mental health clinics and dismal mental health "reform"
in NC.

He's been working 3 days/week at 3 different county clinics. He's laid off at one
the end of February, and the other two days are touch & go. He figures he might as well
retire rather than be part of a sinking ship and have no support staff to adequately
to take care of people.

That means we have to immediately implement a $20K/year reduction in our budget. We knew
we were going to have to scale back our lifestyle in retirement, but we didn't expect
it to happen so soon. We'll still have income from his VA pension, social security (which he
started receiving last November), limited private practice and a drug rehab clinic where he works
6 hours/week.

I'm not eligible for social security for another 4 years (62). I could start withdrawing from my IRA
in less than two years, but I'd rather not.

It doesn't help that our IRA's and investments have taken a 30% hit the last year. Wished I'd switched
to cash sooner.

[Eurobabe]

4. My mom's had to come out of retirement

cause she can't make ends meet on SS and her decimated 401K. :(

I know several other people who can't retire now either. Pretty sad.

[KoKo]

5. Older workers along with everyone else are going to be laid off in this worsening economy...

so we are all in the same boat. But, it's another reason why we still need Social Security...more than every because those older ones can at least get something even if it's less if they are laid off and then suffer health problems.

But, everyone's on the same Titanic that those criminals allowed to hit the iceberg and then jumped ship on the few life rafts that were available. :-(

[elocs]

6. I don't retire for another 10 years, but I refuse to postpone it.

If need be I will adjust my standard of living. My needs and requirements are small and few. I have no intention of working until I drop because that's not living, just surviving.