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Great Recession impacts retirement

November 21, 2011

After the Stock Market Crash of 1929, John D. Rockefeller said, “These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again.” 

In many ways, the Great Recession from 2007 to 2009 was the worst economic downturn since the Great Depression. In addition to all the financial hardships experienced by millions of working families, economic security for future retirees could also be eroded. 

With unemployment running around 9 percent, many workers have been forced to withdraw assets from their 401(k) and other retirement savings.

This leaves workers with less income to set aside for retirement. Social Security and pension credits, along with earnings, are reduced when workers lose their jobs.

Although we are all experiencing some challenging financial times, what might we be able to do to overcome potential income shortcomings when we have reached retirement age? 

According to the U.S. Census Bureau Current Population Survey, workers age 55 and older have progressively trended toward remaining in the workforce every year since 1993.

In fact, 40.2 percent of those older workers chose to keep working in 2010 – the highest level between1975 and 2010.

If one does not want to work well beyond normal retirement age or outlive one’s retirement savings, it is never too early or too late to start saving. Take advantage of the working years left to accumulate assets in 401(k) type plans. These are some discouraging times, but if one can get started and stay the course, prosperity may have a better chance to return again.

The Members Retirement Program, administered by AXA Equitable, has been endorsed by the AOA since 1968 and is committed to keeping costs low while delivering comprehensive service that helps to minimize the time needed to start and manage a plan.  

To learn more, call 800-523-1125, ext. 6087 and ask about the Members Retirement Program’s limited-time enrollment fee waiver or visit www.axa-equitable.com/mrp.

The Members Retirement Program (Contract form #6059) is funded by a group variable annuity contract issued and distributed by AXA Equitable Life Insurance Company (NY, NY).

GE64892 (8/11)

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