New paper: “How Is the Economic Turmoil Affecting Older Americans?”

The Urban Institute has released a new paper by Richard W. Johnson, Mauricio Soto, and Sheila R. Zedlewski entitled "How Is the Economic Turmoil Affecting Older Americans?"

The slumping stock market, falling housing prices, and weakening economy have serious repercussions for the 94 million Americans age 50 and older who are approaching retirement or already retired. Retirement accounts lost about 18 percent of their value over the past 12 months, and between January 2007 and May 2008, housing prices fell from 4 to 20 percent depending on where seniors live. Older Americans have little time to recoup the values of their homes, 401(k) plans, and individual retirement accounts—all important parts of their retirement nest eggs. More and more older Americans are working to bolster their retirement incomes, but the rising unemployment rate, now 6.1 percent, limits their prospects. This fact sheet examines the impact of the ongoing economic turmoil on retirement savings, home values, and retirement decisions.

Click here to read the whole paper.