Credit crunch hits Americans’ retirement plans
October 8, 2008 by Personal Liberty News Desk
The credit crunch has sent Americans of all ages scrambling to reassess their personal economic situation – including baby boomers who may have assumed they were on the cusp of enjoying their golden years in relative wealth.
Around one-third of middle-aged workers have considered putting off their retirement due to financial concerns, according to research from AARP.
The survey findings, reported in the Wall Street Journal, also reveal that 20 percent have stopped contributing to their retirement plans during the past year.
More than a quarter of respondents said they were struggling to pay rent or their mortgage, while 13 percent admitted they had prematurely withdrawn funds from their retirement savings, despite the fact that this decision carries a tax penalty.
Commenting on the findings, Jean Setzfand of the AARP said that many people have been sacrificing longer-term financial goals to cover more pressing "basic expenses like food, gas and utilities."
"People are trying to get through the day, and worry about the future later," she explained, according to the news provider.
There are around 78 million baby boomers in the U.S., according to census statistics.