There is no end to financial crises and many older Americans see
no signs of retiring as their portfolios shrink and
home values declined. Many Americans said that
they plan to work past retirement.
According to AARP, 70 percent of older Americans will
keep working into their retirement, citing money as primary
reason.
To remain financially secure many people will be
choosing to continue working rather than retiring as it is only way
to remain financially secure.
However, the consequences may be more significant as
older Americans will remain on their jobs not leaving their jobs to
younger workers. If older workers are not giving up jobs, younger
workers will face problems. If promotions are not available in a
workplace, many younger workers will quit.
Adding to more consequences for employers, older
workers may be more costly in terms of salary and benefits.
Most investment and most important 401K plans are
either not growing or shrinking. Wall Street made many hard working
Americans loose their money fast this year.
One of the most reputable companies GM announced that
it will suspend matching 401K plans to its employees as it needs to
conserve cash.
Many U.S companies reports slowdown in third quarter
earnings and as a result of that many layoffs are near. This leaves
many people wondering if their job is secure enough, if their
savings will be enough.
Former Fed. Chairman Alan Greenspan said "Given the
financial damage to date, I cannot see how we can avoid a
significant rise in layoffs and unemployment,"
Even with credit card use many banks are struggling as
Americans are not paying their bills on time. Once job loss occurs,
people turn to credit cards and after all simply walking away from
the bill.
Home prices declined and with rising foreclosures
house prices will decline additional 8 percent to 10 percent in
2009. In third quarter alone foreclosures filling jumped to 70
percent.
Worries about economy hung over the markets. There is
a belief that economy is in recession or heading for one. This will
not help older Americans at all. Working might be the only option to
survive.
These days many Americans barely can imagine that they
will retire one day as recovery is not coming quickly enough. No one
can control craziness in the market, but you can control how long
you are going to work.
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