The current economic crisis is having a lasting impact on many older Americans.
Seniors are being forced to make difficult financial decisions because they have so little time and so few available resources with which to recover from losses in the housing and financial markets.
A new survey from Golden Gateway Financial shows that these losses are causing many seniors to consider retiring at a later age than originally planned. The survey asked Americans age 62 and older how the economic crisis was affecting their retirement plans. Not surprisingly, the number of respondents who plan to retire after age 70 increased substantially from the number who had planned before the crisis to do so.
"Even though some economists are beginning to grow optimistic, older Americans continue to feel real pain and must make hard trade-offs and decisions," said Eric Bachman, founder and CEO of Golden Gateway Financial. "This is the worst possible time for the 40% of seniors now considering delaying retirement to be searching for jobs. It's unfortunate that the hopes and dreams of these retirees are being put on hold."
Overall, the survey found that many seniors understand exactly how the economy is affecting their retirement finances and plans. It also illustrates the concern that many seniors have about the prospects for their continued ability to sustain retirement.
The survey showed that:
* Before the economic crisis, 67% of respondents planned to retire before age 70.
* Now, the number of seniors planning to retire by age 70 has dropped to 40%.
* Before the economic crisis, 30% of those surveyed planned to retire after age 70.
* Now, almost 50% of seniors plan to retire after age 70.
* More than 40% of seniors polled said the current economy has had a negative effect on their ability to retire.
* More than 50% of respondents said they are concerned that their overall net worth may no longer be enough to sustain their retirement.
* 86% of seniors said they had a reasonable understanding of their net worth, and 50% said their net worth had declined by between 10% and 30%.
The independent online survey, conducted with United Sample Inc. (http://www.unitedsample.com) in partnership with Golden Gateway Financial, polled a nationwide representative sample of more than 500 seniors age 62 or older. A complete list of questions and percentage answers are available at the Golden Gateway Financial Web site or by contacting the company (http://www.goldengateway.com).