Alert
Close

Last chance! Play brain games for a chance to win $25,000. Enter the Brain Health Sweepstakes

AARP Membership: Just $16 a Year

Highlights

Open

Grocery Coupon Center

Powered by Coupons.com. Access to grocery coupons

Bad consumer experience?

Submit a complaint to AARP's consumer advocate

Geek Squad

Exclusive offers for members

Technical Icon

Spanish Preferred?

Visit aarp.org/espanol

10 Steps to Retirement

Do something every day to help you achieve your goals

Jobs You Might Like

most popular
ARTICLES

Viewed

Recommended

Commented

work
PROGRAMS

Best Employers for Workers Over 50

See the latest winners of this AARP recognition program.

National Employer Team

See which companies value older workers.

Employer Resource Center

Attract and retain top talent in a changing workforce.

Older Workers May Never Recover From Great Recession

They raid savings, delay medical care

  • Text
  • Print
  • Comments
  • Recommend

The Great Recession drove millions of older Americans to deplete savings accounts, put off medical or dental treatment and reduce their retirement expectations, according to a survey released Tuesday.

See also: Jobs up, employment down, except for 50+ workers.

While unemployment rose among all ages, the jobless rate for workers age 55-plus reached levels not seen in 60 years, forcing many to give up long job searches and end their working lives without adequate income.

The "Insight on the Issues" survey of more than 5,000 people, conducted in October by AARP's Public Policy Institute, sought to answer how the recession has changed the lives of older workers. All the survey participants had been in the labor force continuously between October 2007 and October 2010 or for part of that period.

"The future is a big question mark for many of them," the study says. "Recovery for persons most adversely affected (e.g., the long-term unemployed; those who file for bankruptcy) will likely be long and slow, and some may never make it back to where they were before the recession."

How workers are coping

The survey painted a grim picture of older adults struggling to cope with joblessness and declining nest eggs. Some borrowed money from family and friends, while others dropped their health insurance, just to get by.

Nearly one in three (30 percent) of the survey's respondents said they were unemployed and looking for work or were employed but had been laid off in the three years of the study; 13 percent said they were no longer in the labor force.

To deal with a decline in household income or rising expenses, half of those polled said they withdrew money from savings, delayed getting medical or dental treatment, or stopped taking their medications. More than one in four got financial help from family or friends.

The findings showed the building blocks of a comfortable retirement toppling for many. One in four (25 percent) said they had exhausted their savings during the recession and one in five (19 percent) said they'd accumulated more credit card debt or were behind on those payments.

53.6 weeks: Current average duration of unemployment for workers 55-plus

Nearly half (48 percent) said they had trouble making ends meet at some point during the three years, and one in seven (15 percent) couldn't always pay the rent or mortgage.

Among the key findings:

  • 33 percent planned to delay retirement.
  • 37 percent relied on credit cards for everyday purchases.
  • 36 percent stopped or cut back on saving for retirement.
  • 12.4 percent lost their health insurance.


Next: Worries about managing finances in retirement.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

You must be signed in to comment.

Sign In | Register

More comments »

Your Work

Jobs You Might Like

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Members get exclusive savings on HP commercial technology and free US ground shipping.

UPS

Members get 15% off eligible products/services. 5% off UPS shipping at The UPS Store®.

Mature woman lounging on armchair using a laptop

Members enjoy exclusive savings on dining, travel, tech & more at AARPdiscounts.com.

Member Benefits

Members receive exclusive member benefits & affect social change. Renew Today

Being Social

Featured
Groups

watercooler

The Water Cooler

Expand your job network, find new leads and share tips for getting ahead. Discuss

entrepreneurs

Entrepreneurs

Find the start-up resources and advice you need to be your own boss. Discuss

Employment Networking Group

Networking

Connect with others who are seeking employment. Join