By Emily Wood
November 5, 2008
This is the first of a two part series examining how the economy may be affecting retirees in Southern Oregon.
MEDFORD, Ore. -- The economic slowdown is impacting almost every American in todays workforce, but a growing number of older workers are finding life after social security is still a struggle, and postponing retirement a necessity.
A recent study by American Association of Retired Persons shows that in the last 12 months, nearly 25 percent of workers aged 45 and older have increased the number of hours they work. 20 percent have actually stopped putting money into a retirement account in order to pay the bills.
Local economic experts say the national trends are being mirrored in Southern Oregon.
"Both locally and across the nation we're seeing more people in the typical retirement ages either staying or returning to the workforce," says Regional Economist Guy Tauer.
Tauer says with the turmoil in the financial markets, people are worried about their nest eggs and are working longer.
"From 2001 to 2007 we've seen about a 41 percent increase in the number of people working aged 65 and older...Nearly a four times faster increase in the number of people 65 and older that are employed here in Jackson County," says Tauer.
According to the Bureau of Labor Statistics, the graying workforce will continue to grow, and the number of workers aged 55 to 64 is expected to climb more than 36 percent. But the most dramatic growth is expected for the two oldest groups. The number of workers aged 65 to 74, and 75 and older, is predicted to soar by more than 80 percent.
AARP says only half of America's workforce is saving for retirement, and with a weakened economy, people are saving less for tomorrow to pay for bills today.
"The most important thing for us to realize as a society overall is that our savings rate for everybody is gone down dramatically in the last 20 years. It used to be about 10 percent savings in retirement ,or equity in a home, in the last couple of years, it's gone to zero," says AARP Board Member Dr. Allen Douma.
Financial advisors in Southern Oregon say clients close to retirement are especially concerned about the situation on Wall Street.
"They're scared. 'Do I have to wait? Do I have to postpone retirement, work longer?' Those are the types of questions that they're asking," says Smith Barney Financial Advisor Gayle Reed.
Reed, who has more than 30 years experience in finance, says the biggest problem many retirees, and those preparing for retirement face is they often underestimate how long they'll live.
"I have clients that are 100. I have clients that are in their eighties. Those clients went through the great depression," says Reed.
"We used to think that 60 used to seem old to some people, and I think it's a very young age now. So I think our perception of what we consider to be old is really changed over time," says Reed.
