Just a few years ago, men and women on the cusp of retirement may have been feeling very good about their nest egg.
However, the economic turmoil of the past year has already done significant damage, according to reports. The Congressional Budget Office has estimated that retirement accounts lost a total of around $2 trillion over the past 15 months.
An article in U.S. News and World Report describes how baby boomers have been looking at different options for ensuring they have enough money to fund them throughout retirement.
Maurice Soto, a research associate at the Urban Institute, told the news provider that a potential retiree should make sure they have a portfolio that "reflects the time horizon and taste for risk" of their situation.
"The common advice is for households to reduce their exposure to stocks as they approach retirement," he explained.
Meanwhile, some workers who were hoping to get a different job after retirement or start a new business may want to think again in light of the effects of the credit crunch, the article suggested.
Richard Johnson of the Urban Institute said that new job opportunities – particularly part-time positions and flexible working – are likely to become scarce in the next few years.