Older Americans forced to delay retirement as recession erodes investments, home values

Older Americans seem to have reconciled themselves to the prospects of a delayed retirement, with the recession having eroded their investments and home values, AP reports.

Around 82 per cent of working Americans over 50 say it was at least somewhat likely they would work for pay in retirement, a poll released yesterday by the Associated Press-NORC Center for Public Affairs Research showed.

According to the survey, 47 per cent of working respondents now expected to retire later than they previously thought and, on average, planned to call it quits at about 66, or nearly three years after what they expected at 40.

Among those more likely to put off their plans were men, racial minorities, parents of minor children, those earning less than $50,000 a year as also those without health insurance.

About three-quarters of working respondents said they had given their retirement years some or a great deal of thought, and when considering factors that were very or extremely important in their retirement decisions, 78 per cent cited financial needs, 75 per cent said health, 68 per cent their ability to do their job and 67 per cent said their need for employer benefits such as health insurance.

The shift in retirement patterns comes even as a trend towards later-life work sets in.

Labour force participation of seniors declined for a half-century following the advent of Social Security, with a pick up in the late 1990s older workers now the comprised the fastest-growing segment of the American workforce. It has been projected that the 55+ would make up one-fourth of the civilian labour force in 2020.

That growth comes with a rising interest in retirements that were far more active than the old stereotype of moving to Florida, never to work again. Among the retirees, 4 per cent were looking for a job and 11 per cent were working again already.

While those still on the job showed far greater interest in continuing to work, around 47 per cent of employed survey respondents said they were very or extremely likely to do some work for pay in retirement, while 35 per cent said they were somewhat likely.

Increased lifespans as also a renewed idea of when old age began were also keeping older adults working. Six in 10 reported they felt younger than their age while only 6 per cent said they felt older. According to the respondents, the average person was old at about 72, while one in 5 claimed to be dependant on the person.