For more stories like this, sign up for the PLANADVISERdash daily newsletter.
Data & Research February 6, 2009
Even Execs Hard-Hit by Economy
A new survey found 86% of executives said their shrinking retirement savings will mean working longer, with an average delay of 7 ½ years.
Reported by Fred Schneyer
A Reuters news report said the survey by TheLadders.com, a service catering to those making more than $100,000 per year, found that many responding executives were being forced by the economy to dip prematurely into retirement savings or their college funds.
Reuters said the survey found:
- Forty percent of those polled said they were forced to use retirement savings to weather the recession.
- Fifty-eight percent of respondents stopped contributing to their 401k retirement accounts altogether.
- Half said the recession would limit their children’s college prospects, and 40% said they stopped investing in their children’s college savings accounts (see “Retirement Takes Priority over Saving for College“).
“Nobody’s been spared,” said Robert Turtledove, spokesman for TheLadders.com, in the news report. “This is investment-savvy, smart-managing, high-earning executives. It’s not a knee jerk reaction. I think it’s saying that wherever you are, this is impacting everybody.”
The survey covered 1,162 executives.
You Might Also Like:
Sounding the Alarm on Gender Inequality in Retirement
A recent U.S. House Education and Labor Committee hearing covered several retirement-related topics, including how to increase pay and benefit equity for women in the workforce.
How Consumption Changes as Retirement Progresses
The traditional view is that retirees prefer steady consumption as they age, but research suggests that spending declines as retirement progresses.
Retiree Poverty Rates Vary Substantially by State
Higher than average rates of poverty among Americans over the age of 65 can be found in 19 states and Washington, D.C., according to a MagnifyMoney survey.