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Rough Economy Means Even Rougher Retirement
By NCPSSM | October 8, 2008
There have been a large number of articles, reports, and Congressional testimony this week on the current economic crisis and its impact on seniors. Here is a quick summary of the best of the best:
Americans’ retirement plans have lost as much as $2 trillion in the past 15 months – about 20 percent of their value according to Congressional Budget Office Director Peter Orszag.
Orszag summarizes his testimony before the House Education and Labor on his blog and you can watch the full hearing here.
Of course, seniors aren’t alone in feeling the serious effects of this economic crisis but if you’re a retiree depending on your savings and investments to supplement your monthly Social Security just to get by your financial resources during this economic downturn are severely limited.
For some it seems the all-too-common choice to make ends meet has been to cut their healthcare. The Chicago Tribune’s coverage begins:
They are splitting pills or deciding not to refill prescriptions. They’re missing doctors’ appointments, skipping needed dental work, canceling home-care services.
And more seniors are crossing into poverty. The Boston Globe reports senior advocates in Massachusetts are sounding an alarm:
Since February 2007, the number of food-stamp recipients has increased by 39 percent, from 50,291 to 69,765 senior citizens, according to the state Department of Transitional Assistance. From January to September, the number of elderly food stamp recipients increased from 59,941 to 69,765. Statewide, there are about 856,000 people older than 65.
Even before the economic downturn, older Americans began working longer. The Bureau of Labor Statistics reports twenty-nine percent of people in their late 60s were working in 2006, up from 18 percent in 1985.
While the number of workers who are 55 and older is expected to increase at more than five times the rate of the overall work force over the next decade…finding jobs for seniors in this economy is especially difficult. Craig Copeland, a senior research associate with Employee Benefit Research Institute told the Milwaukee Journal:
“In general, it is hard for retirees to come back into the work force after they leave, particularly for those that have been out for more than about two years, as things change in the work force rather rapidly.”
Copeland also noted that some employers are unwilling to hire older workers, and the types of jobs available to older workers are limited. But, he said, these factors are changing as the types of jobs in the economy are changing and the need for workers with specific skills and experience is growing.”
It’s clear we must tackle the economics of aging and longevity head-on remembering that America’s seniors are a national resource not the economic drain depicted by those who are always looking for ways to cut Social Security and Medicare. One last link on this issue is to a summary of Dr. Robert Butler’s book, The Longevity Revolution.
Topics: Aging Issues, pensions | 1 Comment »
July 3rd, 2010 at 1:50 am
Food Stamps are nice and handy if you want some fast meals.*.’