While the economic crisis is being felt by nearly every segment of the working population, one group of workers is faced with particularly tough decisions regarding their futures. 60% of workers over the age of 60 say they are putting off their retirement because of the impact of the financial crisis on their long-term savings, according to a survey by recruitment firm CareerBuilder.  The survey was conducted among more than 8,000 full-time U.S. workers ages 18 and over between Nov. 12 and Dec. 1, 2008.

Depleted savings accounts attributable to the economic downshift are causing older workers to stay in the workforce longer to make up their losses. One in 10 workers (11%) over the age of 60 who are putting off retirement say that the decrease to their savings might cause them to never retire, while 73% think it will take them up to six years of extra work to recoup their lost savings. Nearly a quarter (24%) feel they can make their money back by working an additional year or two.

Total U.S. retirement market assets, which include defined contribution 401(k)-type plans and defined benefit pension plans, lost nearly a quarter of their value, tumbling 24% to $7.86 trillion in 2008, down from $10.3 trillion the prior year, according to a report by Spectrum Group.

In the corporate sector specifically, the value of 401(k) plans, which account for 71% of all corporate retirement assets, fell to $1.94 trillion in 2008 — a 23% decline from $2.52 trillion in 2007. However, over a longer period, average annual growth remained positive at 7.8% from 1995 to 2008.

Source: SHRM, Stephen Miller, 3/23/2009