Slow Economy Hits Younger Boomers Hard

Employee Benefits News E-Brief
May 15, 2008

Nearly 25% of all middle-aged workers (ages 45-64) have recently prematurely withdrawn funds from their 401(k), individual retirement accounts or other investments due to the current economic downtown, according to a survey by AARP.

"Taking money out of you retirement savings has a compounding effect because that money is not allowed to grow at a time when you have fewer working years to replace the losses", says Tom Nelson, chief operating officer at AARP.

In addition, 45% of workers say their employer has increased the amount employees pay for health insurance, 29% say their employer has laid off workers, and 27% say their employer has stopped hiring.

Source: AARP: The Economic Slowdown's Impact on Middle-Aged and Older Americans