Retirement? Not So Fast.

The economy is crushing a lot of us currently out in the workforce, employed or looking for gainful employment. Home prices are taking a dive, people are losing their homes, their jobs and, for many, their nest eggs. AARP put out a survey today that highlights the fact that many would-be retirees are having to postpone that retirement. Some of these would-be retirees are doing so because of the economic downturn and its impact on their long-term financial security. Either way, not a good sign, especially for those people who are getting into what should be their golden years.

Baby Boomers and retirees have lost confidence in the economy and in the government that oversees that economy. Twenty-five percent of boomers reported making early withdrawals to their 401(k)s and other investments–withdrawals that not only take money immediately from the future but that have a double whammy effect in that the money also loses the ability to compound and earn more money.

The effect of higher food costs, the need for more medicines, and other factors are affecting boomers and younger retirees more than older retirees because the younger groups have had less time to pay off homes and build their nest eggs like their predecessors. Times are getting tougher, and although Bernanke says the toughest times are likely over, I doubt that brings much solace to the groups suffering through them, especially if it means going back to work or remaining in the workforce longer than they thought they would have to. 

While I have a long while to retire, and while I have never been the ideal candidate for saving for retirement, I don’t feel so terribly bad right now, not watching what has unfolded before my eyes, anyway. I feel bad for the savers and those who have been doing so since they first joined the workforce, because their plans don’t seem to be paying off as hansomely as they should. Maybe they should have lived a more adventurous life. Maybe they should have taken more risks–or, in some cases, not. I don’t know the answer.

But I think you know where my head is. I continue to live a relatively adventurous life, both personally and financially. And I have an umbrella. I just don’t know if it will cover my head when the rains get heavy. You?