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 A.A.R.P, 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.
