In the wake of the Great Recession, many baby boomers are delaying retirement, hoping that a few more years of work will help them replenish nest eggs devastated by the economic downturn and falling home values.
A poll last fall by The Associated Press and LifeGoesStrong.com showed 73 percent of boomers -- those born in 1946 through 1964 -- planned to work past retirement, up from 67 percent in the previous spring, according to a report in USA Today.
The results showed that 53 percent of boomers surveyed said that they didn't feel confident that they will be able to afford a comfortable retirement, up from 44 percent in March.
Retirement expert Olivia Mitchell told AP that working longer and cutting back are two practical ways for boomers to save more.
"It's a kind of down-scaled consumer society that I see in the next five years at least," said Mitchell, a professor at the University of Pennsylvania's Wharton School and executive director of the Pension Research Council. "Consume less and tighten the belt."
For boomers, the stock market is another source of anxiety. Many have retirement plans tied to the performance of equities and 401(k) and similar plans have taken a beating in recent years because of the ailing economy.
In all, AP reported, 62 percent of the boomers polled in the survey lost money on at least one of four key parts of retirement savings:
- A workplace retirement savings plan, 42 percent.
- Personal investments outside of an IRA/workplace savings, 41 percent.
- An IRA (individual retirement account), 32 percent.
- Real estate, 29 percent.
For more on the challenges facing boomers and other American workers in saving for retirement, check out the infographic below from Good, a news and information website.
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