The AARP Public Policy institute has released a survey that documents the impact of the recession on Americans aged 50-plus, and takes a look at the effect the recession has had on peoples’ plans for retirement, among other things.
As a whole, middle aged and older Americans took quite a financial hit as a result of the recession.
- Almost one-third of the survey participants experienced a substantial decline in the value of their homes.
- With the high rate of unemployment and the increase in living expenses caused by the recession, many people were forced to rely on their savings to cover their expenses. Just under 25% of survey participants exhausted their savings.
- Many people responded to financial pressures by saving less, or by not saving at all. Among those who did this, about 36% cut back on the amount of savings earmarked for retirement.
The concern for the survey participants was that, because of their age, they have less time to recover from the recession and prepare for retirement. The two main strategies that people seem to be choosing are to delay retirement and to work part-time in retirement.
If you’ve taken a financial hit as a result of the recession, and you’re wondering how you’ll be able to afford to retire, you should take a step that many Americans ignore: consider seeking the advice of a qualified, reputable financial advisor. He or she can help you make the most of your financial situation, and may very well be able to suggest some fresh strategies that can make all the difference.