Financial worries dog older workers; confidence falls

Updated 1h 22m ago
By Christine Dugas, USA TODAY

Faced with increasing job losses, worries about having enough money for retirement and continued difficulty in paying for basic items such as food, those ages 45 to 64 are one worried group, a survey released Tuesday by AARP shows.

The angst is also affecting the group's sleep habits.

"Even before the economic downturn, the 45-to-64 population was a high-anxiety age group," says David Certner, legislative policy director at AARP. "They were supposed to be preparing for their own retirement, and they are worried about other generations, as well."

The survey, called "A Closer Look," was last done about eight months ago. The recession's full effect is now being felt, new findings show:

•30% of those surveyed have stopped contributing to a 401(k) plan or IRA. And 18% of the study group also have prematurely withdrawn funds from their retirement savings accounts.

•Job loss is rising. Some 12% of older Americans say they or a family member have lost a job in the past year, up from 8% in the April 2008 survey and 9% in December 2008.

•Even many who still have a job are feeling more financial pain. Among workers, 30% say their hours have been cut or they have had to take a pay cut.

•Nearly half, 49%, say that they are not confident about having enough money in retirement.

•27% say they are now having trouble paying for basic items, such as food and utilities. The problem is much worse for African Americans and Hispanics, who often have lower incomes, Certner says.

•Among those who have not lost a job, 12% say that they will delay their retirement or return to work if they have already retired.

Even though the stock market has rebounded in 2009, many older Americans were unable to take advantage because they were struggling just to make ends meet.

About half of older Americans, 47%, say they have lost a substantial amount of their savings in the stock market. But if they have now stopped contributing money to their 401(k) plan or are withdrawing money, they've lost the opportunity to rebuild their savings, Certner says.

http://www.usatoday.com/money/perfi/ret ... aarp_N.htm