Financial Crisis Threatens Retirement Security: Plan Loses $2 Trillion
October 7, 2008
Washington - An estimated $2 trillion was lost in American’s retirement plan in the past 15 months according to the Congress’ top budget analyst, revealed on Tuesday, October 7.
The head of the Congressional Budget Office, Peter Ozrag, disclosed that private and public pension funds and employees’ private retirement savings account have lost some 20% since mid of 2007.
Thereby, many Americans worry of working longer due to a declination in the value of retirement, based on the poll taken by the Associated Press.
Ozrag said that the turmoil within the financial industry drags the stock market down which places retirement security in trouble.
Financial crisis indeed devastates the workers’ savings forcing them to hold off on major purchases and consider delaying their retirement.
A study found out that economic downturn forces a worker to stop putting money in retirement savings account during the past year and there are also some who increased the number of hours of their work.