WINDSOR, Conn., Sept. 23, 2009—A recent LIMRA study found that 29 percent fewer retirees worked for pay this year than in 2008.
“Obviously, the severe recession and the rising unemployment have affected the number of jobs available to retirees,” said Sally Bryck, associate research director, LIMRA Retirement Research. “While this trend has been magnified by the recession, it certainly isn’t unique. Consistently, our research has shown that issues surrounding health, family and lack of work skills have been obstacles for employment of retirees.”
In fact in a separate 2007 LIMRA study, more than 44 percent of pre-retirees surveyed said they planned to work in retirement, yet less than 25 percent of retirees actually worked in retirement.
Coupled with the significant drop in the markets (and investments), retirees, who planned to supplement their retirement income by working, may be unable to meet their financial needs during this uncertain time.
“It is important that pre-retirees and their advisors avoid relying heavily on potential employment earnings in their planning,” notes Bryck.
LIMRA is a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.