Workers more firmly anchored to job positions, spurning retirement

Posted on: Tuesday, February 05, 2013

In what could be a sign that people are still worried about the health of the country's economy and whether they will be able to bounce back from another recession, more people than ever are putting off retirement and staying in the workforce.

According to recent statistics from The Conference Board and its new report - Trapped on the Worker Treadmill? - among workers between 45 and 60 years of age, plans to delay retirement increased among all individuals who had experienced a job loss or salary cut since 2010. This was the case among all older workers polled, regardless of race, gender or nationality.

Gad Levanson, director of macroeconomic research at the Conference Board, noted that these findings may give some consumers pause about whether the economy has, in fact, improved, since the recession officially came to an end in 2010.

"It's disconcerting that the two years in which the U.S. economy seemed to finally, if fitfully, turn the corner also left so many more workers compelled to change their retirement plans late in their careers," said Levanson.

Ben Cheng, co-author of the report, indicated that the main reason for why so many of today's older generation are staying with their present employer for a longer period of time is due to savings concerns.

"The cumulative effect of drawing down assets in hard times - including the loss of future gains during the recovery - helps explain the current plight of older workers," said Cheng.

He added that those who've been able to tread water have done so by relying on their assets, but now, they're finding that they have to work past the traditional age of retirement in order to rebuild their savings.

It may be wise for insurance agents to float the possibility of their investing in an annuity. These savings devices can help supplement their income so that they have more to rely on besides their 401(k) or Social Security once they become eligible.

Posted In: Insurance News, Health Insurance

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