Tuesday, October 27, 2009

6.6 Million Americans Age 65 or Older Unemployed

The following article was published by Money Management Executive:

While the recession has forced many Americans to delay retirement, one of the hardest hit are those already retired in search of work. There are 6.6 million Americans age 65 or older who have lost their jobs in the recession, 61% more than the 4.1 million unemployed in this age group in 2000, The New York Times reports.

This is five times the number of people in this age bracket who were unemployed in the Great Depression. Making matters worse, many older Americans still owe money on their mortgages.

In terms of percentages, 6.7% of older Americans are out of work. While that’s below the 9.8% national average, it’s far higher than the 1.9% who were unemployed earlier this decade. And among those who successfully find other gainful employ, it takes an average of 36.5 weeks, or more than nine months. That’s 40% longer than other unemployed folks.

According to the Congressional Research Service, the median income for those 65 and older is $18.208, with nearly 25% of this population receiving $11,139 or less a year. The average Social Security benefit is currently $12,437 a year.

This information emphasizes the importance of a financial plan. First, unemployed individuals age 65 and older with written financial plans likely have sufficient emergency funds to support themselves through their job search. Second, individuals who have been guided by a written financial plan are much more likely to have established considerable savings, making finding new employment more a luxury than a necessity.

1 comment:

Pro 2 Pro Network said...

When I read that people over 65 now is five times the greater than those unemployed during the Great Depression, that was simply shocking. A financial plan should be set in place in case these extreme circumstances arise. People even younger than 65 should take financial planning into consideration for their future.