Retirees’ wealth hit by stock market turmoil
September 24, 2008 by Personal Liberty News Desk
Planning for retirement is one of the most important steps you can take to protect your wealth, but what if you watched your careful plans crumble due to stock market turmoil?
That is precisely the situation that is currently being faced by millions of retirees, according to a report in the New York Times.
It describes how many older people are experiencing increasing financial uncertainty, with a combination of stock market drops, high fuel costs and decreasing property values behind the pain.
"If you’re 45 and the market goes down, it bothers you, but it comes back," Alicia H. Munnell, director of the Center for Retirement Research at Boston College, told the publication. "But if you’re retired or about to retire, you might have to sell your assets before they have a chance to recover."
People with assets may be among those most affected by current economic conditions, due to the recent disintegration of the U.S. housing market.
Findings from the AARP reveal that more retirement-age Americans have been consigning themselves to working longer, as well as reducing the amount they contribute to their nest egg in order to pay bills.