In this rough economy, most people cannot afford to be unemployed. This is especially the case when these people have mortgages to pay. However, money woes do not discriminate against age. More and more, people are finding themselves unable to retire at the traditional age of 55. In fact, surveys have shown that just over 40% of Americans 55 and older are still working. Comparatively, this figure was below 30% in the early 1990s.
Granted, there are people in this age range that choose to work. But overall, people don't have much of a choice otherwise. The economy can take the blame for that. Fortunately, there are more jobs today that are not physically demanding as compared with past decades, so those who are forced to work are at least able to do so relatively well. Those who have held onto a job throughout the recession are reluctant to give them up quite yet.
This economy has made it increasingly difficult to save money in a retirement plan. Even those who had a significant nest egg in the past are finding that it has dwindled due to drops in the stock market. Wisely, people are holding on to every penny they can. Specifically, it is women between 55 and 64 who are now working more often to make up for child raising years when they may not have worked, and therefore did not have retirement savings during that time.
There is also the issue of health insurance. Those who worked full time for years may have had health insurance through their employer that took care of most of their medical needs. It would be very expensive for someone at retirement age to purchase private health insurance and pay on it every month, so this has also had an affect on the decision to retire. Health care coverage is very linked to employment, and many have depended on this over the years. In fact, it is almost vital for some people to continue working until they've become eligible for Medicare.
Additionally, many older homeowners have refinanced in recent years expecting to sell their home at a profit so they could downsize and not have a mortgage. However, they are now finding themselves unable to profit, which forces them to continue making monthly mortgage payments. This of course, leads to a greater need for a job despite being near or past retirement age.
Overall, people are afraid to give up their jobs despite their age, or simply cannot afford to retire in this economy. Are you in a similar situation?
