Power Breakfast: Recession rewriting retirement plans, Cyber Monday, holiday travel, security business, Wal-Mart, Google

The triple whammy of a severe recession and bear markets on Wall Street and in real estate continues to rewrite the retirement plans of many Americans, AJC staffer Russell Grantham reports.

Though two of those obstacles have eased lately — with the recession generally considered to have ended in mid-2009 and the stock market rising roughly 60 percent since its early 2009 trough — their effects linger, Grantham writes. Many people have been forced into early retirement because of staff downsizing, while others, nervous after the recent economic events, have put their plans for leaving the work force on hold.

In a newly published book, “Reconsidering Retirement, How Losses and Layoffs Affect Older Workers,” economists Courtney Coile and Phillip Levine noted that the number of retirees claiming Social Security benefits surged 23 percent between 2008-09, far above normal trends, Grantham writes.

Coile and Levine, professors at Wellesley College in Massachusetts, estimated that 378,000 people across the country have been forced to retire early due to job cutting, while 258,000 have delayed retirement due to the decline in stock prices, Grantham writes.

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3 comments Add your comment

TnGelding

November 29th, 2010
6:17 am

Being forced to retire early is a bad thing? I’m surprised the number isn’t closr to a million, especially since many received severance packages. They should consider themselves lucky and enjoy their golden years. The first of the boomers became eligible for SS last year, so there would have been some increase anyway. And those that are delayng retirement should reconsider. You’ll still own that stock or 401(k) and it will contiue to recover, especially if they continued to invest at the lower prices. The housing market will continue to be a drag for years, however. That has had a much bigger impact. But it’s a great buying opportunity for the wealthy that can stand the hassle. And when you younger folks get back on your feet, don’t buy a bigger house than you need. Why donate your hard earned money to the county tax commissioner and the utility companies?

justin

November 29th, 2010
7:26 am

There a a couple of other reasons people cannot retire. We are helping our children that cannot get a job or who have been laid off from their jobs. Also, some are taking care of grandchildren because of divorce and split famalies.

TnGelding

November 29th, 2010
11:27 am

justin

November 29th, 2010
7:26 am

God bless! Hang in there, it has to get better. I’m afraid many of us didn’t do a very good job as parents. We wanted them to have it better than us, but forgot to teach the basics.