1.6 million older Americans are putting off retirement by remaining in or rejoining the labor force as a result of the financial crisis. Those coming close to retirement age are experiencing stock holdings worth less than they were in 2006, fixed-income investments offering little income and low house prices. As a result, older people trying to get back into the labor force are, not surprisingly, having a hard time finding jobs and ultimately increasing the unemployment rate. As of August, the unemployment rate for people 55 and older is averaging 7.3%, which is the highest level of unemployment since 1948.
It is hard for people to retire right now. I know a lot of people who counted on their stocks to retire, but since they are so low these people just cannot afford to do that. Also, statistically, it is harder for people to find work at an older age, since companies can afford to pay younger people less.
ReplyDeleteThe retirement age in the US is four or five years younger than the retirement age in many European countries. This will make our work years longer but perhaps cover social security better so it does not deplete before our generation has access to it.
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