Oct 7, 2008 7:44 pm US/Eastern
AARP Shows Drastic Downturn In Retirement Plans
NEW YORK (CBS) ―
The economic downturn is draining retirement accounts. According to a survey from the Association for the Advancement of Retired People, the outlook is grim for baby bombers approaching their golden years.
Chris Puckett and Steven Kaplan are walking examples of retirement gone awry.
"I'm real concerned about it. I'm really worried," Pucket admits.
Adds Kaplan: "I've lost a lot of my investments and I realize now I will be working for a long time."
The 55-year-old Kaplan hoped to call it quits in a couple of years, but can't because of the market meltdown.
"I've lost a good portion of my 401-K and I don't see any positive changes on the horizon. I think I'm resigned to the fact I'll be working past 65 provided I have my health," says Kaplan.
Puckett, who works as a librarian, is already working past 65, thanks to the drop in the stock market that has taken his retirement plan along with it.
"It doesn't look like I'm going to be able to retire until I'm 70-75 because the economy is so bad," he says.
Lois Aronstein, the New York Director for the AARP, says the latest survey of baby boomers is a telling sign of the times
"It's a scary time for boomers in terms of how much they've saved," she says.
According to the AARP, 1 in 5 have stopped putting money into retirement accounts, 1 in 3 is considering delaying retirement, and almost 3 in 5 feel they have not saved enough.
"Those boomers who are near retirement are saying, 'I've got to work longer,'" says Aronstein.
Millions of Americans are being forced to do just that – work longer – because the country's pension and retirement plans have lost $2 trillion in a little more than a year.
"I get upset because I'll be working my tail off well into my 60's," says Puckett.
As for how much for how much longer she'll continue to work?
"I'd say at least three or more, depending on how poor I want to be. How poor I can tolerate," she says.
The hope for both now? Stay healthy so they can stay working.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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