Poor Economy and Financial Uncertainty Causing Seniors to Keep Working
By Brenner Spiller & Archer, LLP | May 19, 2016
This is the third article in a blog series on seniors and retirement. Check out the earlier blogs in this series: “Seniors Choosing Not to Retire because of Debt Struggles” and “Exploring the Link between Retirement Savings and Continued Employment.”
The reality is that the poor economy has had a major impact on the ability of US workers to opt for retirement. Almost 50 percent of retirees said that the main reason they continued to work past the age of 65 was financial struggles, according to a recent study.
The economic recession had a major negative impact on many people’s retirement savings, depleting a lot of workers’ financial resources and causing them to dip into their 401(k) retirement plans earlier than expected. The end result is that approximately 60 percent of US households currently do not have any money in their retirement accounts, according to the Government Accountability Office (GAO). Moreover, indicated the GAO report, people with higher incomes tend to get the bulk of 401(k) benefits anyway, suggesting the inherent unfairness of a system that rewards people who are less in need of financial assistance in their later years.
Another problem for retirees who do end up getting access to retirement savings accounts is that they simply don’t know how to handle the bulk of their funds. While many seniors would probably be better served by receiving a monthly check through pensions with well-defined benefits, a lot of retirees find that they suddenly have “a pot of 401(k) assets” and that they don’t know how to oversee or manage these assets effectively. This can, in turn, create uncertainty about their financial futures and lead many to continue working long past retirement age for fear of going bankrupt at some point.
To learn more, check out the Yahoo.com article, “‘I’ll Never Retire’: Americans Break Record for Working Past 65.”
If you or a loved one is dealing with crippling debt and need a little help figuring out how to get past your debt issues, you should talk to a qualified bankruptcy and debt management lawyer. The experienced, knowledgeable bankruptcy attorneys at Brenner Spiller & Archer, LLP can help you. Contact us now to schedule a free consultation.