Delayed retirement grows increasingly common

06.22.09
By Nicholas Storie

Men and women with grown children out of the house and their golden years ahead of them may be making some changes to their retirement plans.

According to a survey by consulting firm Watson Wyatt, 34 percent of all workers have pushed back their retirement age in the last 12 months.

But it's older workers, closer to retirement age, that have really been affected by the recession. When looking at workers 50 years of age or older, 44 percent say they will be delaying retirement. The culprit is overwhelmingly cited as the financial crisis and subsequent drop in portfolio investments and retirement savings.

Over 75 percent of older workers say the decline in value of their 401(k) is keeping them from retiring on schedule while 63 percent say it is the high cost of healthcare that is keeping them in the workplace.

"The economic crisis has affected many workers' retirement plans and nest eggs, but those nearest to retirement have been especially hard hit," said David Speier, senior retirement consultant at Watson Wyatt.

"Older workers do not have the time to offset declining retirement account values, either by recouping their investment losses or significantly increasing their savings rate. For many, the only choice is to delay retirement," he added.

On the other end of the workforce spectrum from those nearing retirement are recent graduates entering the job market. What are their expectations for future employment, savings and retirement?

A recent survey by Manhattan GMAT of business school applicants shows that most young professionals pursuing a higher business degree feel good about their job prospects and secure about their financial future.

Prospective business school students and future company leaders seem to be undaunted by the cost of their education. The survey found that 80 percent of respondents are planning to pay for school on their own. Most also express confidence they will receive well-paying jobs after graduation.

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Many delaying retirement as savings diminish