Postponing Retirement Has Become a Reality for Many

Over the last few years, many Americans, especially low- and middle-income workers, have watched their retirement dreams vanish like dew in the hot morning sun. Home values have plummeted and many retirement funds have lost fifty percent of their value — or more, meaning postponing retirement has become a reality for many.

While we do seem to be coming out of the “Great Recession” — corporate profits are up, housing prices seem to have bottomed out in most areas, and the economy is slowly adding new jobs — it will be quite a while before we’re back to where we were. And that’s bad news, especially for those in the 55 to 64 age bracket, many of whom will now have to work to 70 and beyond to meet their needs.

Retirement Roadblocks Mount for Many

Denise McColister, of Dallas, had hoped to retire at 62.

“At 45, I felt really secure,” the Dallas resident, now 55, recalled. Back then, her husband made good money, and their house was paid for.

Then he became disabled and their house, which they had borrowed against, plummeted in value. Now, instead of padding her financial cushion, she’s working a part-time call center job while hoping for a better position. There’s no retirement in sight.

“I’ll probably be working until I’m called home,” she said.

Working until 70 to maximize your Social Security benefits, which max out at that age, is one option. Downsizing now, to reduce expenses and maximize contributions to your retirement plan is another.

Unfortunately, there are no easy answers. We’ll be recovering from this devastating financial meltdown for a long time to come and postponing retirement has become a reality for many.

Click here to read Retirement Roadblocks Mount for Many posted by Evan Bedard on October 1, 2012 in Latest Financial News

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