PROCEDURE: A telephone survey of 1,002 people ages 45 and older
was conducted in April. Almost two-thirds (63%) of those asked owned stocks
individually or through self-directed retirement plans such as 401(k)s or Individual
Retirement Accounts, and 72% of these investors had lost money on their investments
in the last year.
FINDINGS: Among people ages 45-64 years, almost 25% are prematurely
taking money out of their 401(k)s and other investments. Younger boomers (ages
45-54), in particular, are postponing paying bills (27%) and cutting back on
medications (17%). Among those who were still working, 27% said they postponed
plans to retire due to the recent economic downturn.
Among retirees and people ages 65+, 59% reported having a harder
time paying for food, gas and medicine. One third (34%) of all retirees have
had to help a child pay bills in the last year. A small percentage (11%) of
retirees sought help from loved ones or charity organizations in the last year.
COMMENT: “The current economic downturn is forcing millions
of Americans to make very difficult decisions on their immediate survival and
long-term financial security,” said Tom Nelson, AARP’s Chief Operating
Officer. “Taking money out of your retirement savings has a compounding
effect because that money is not allowed to grow at a time when you have fewer
working years to replace the losses. Even more troubling, shortchanging your
health care can lead to higher health care costs down the road.”
Source : http://www.icaa.cc
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