Baby boomers who didn't save for retirement counted on working longer as a Plan B. But as Gail MarksJarvis notes in the Chicago Tribune, more boomers are being laid off due to the economic downturn. So much for Plan B. Writes MarksJarvis:
"Baby Boomers who never got around to saving as much as they hoped promised to keep working past retirement age. The joke in the generation has been: 'I'll just work forever.' And the intent has shown up repeatedly in research. But now along comes an economic downturn, and people are losing jobs. It looks as though Plan B, a lifetime of working, might not be an option to rescue undersavers after all."
"Too many people approaching retirement age have saved too little, accumulated too much debt, stretched too far on homes that have lost value and never made good on the promise to save more tomorrow," said Jack VanDerhei, a Temple University professor and fellow at the Employee Benefit Research Institute.
"Working longer can make an enormous difference, but, now, tomorrow is working in reverse," MarksJavis said. "Unemployment is climbing. Some Baby Boomers will be scrounging for employment in their 50s rather than sprinting toward the retirement homestretch by pouring last-minute savings into 401(k)'s and individual retirement accounts."
For the full article, visit www.chicagotribune.com.