February 17, 2009
Seniors face growing uncertainty as unemployment rates continue to rise and retirement accounts decline. New research addresses unemployment, poverty, and the distribution of assets among older adults. Recent Urban Institute forums have spotlighted the fragility of our retirement income system.
Unemployment Rate Soars for Older Men with Limited Education
As the recession enters its 15th month, job losses are accelerating. The downturn has not spared older workers. The January unemployment rate reached 6.0 percent for adults ages 55 to 64 and 5.7 percent for adults ages 65 and older. Hispanic men, older men working in construction and manufacturing, and those with limited education have been hit hardest. (Fact Sheet)
The Economic Recovery Package Will Help Poor Older Adults, but More Could Be Done
Older adults often are left out of policy conversations on poverty because relatively few of them are thought to experience economic hardship. Yet, an updated measure of poverty indicates that the rate for adults ages 65 and older matches the rate for children. The economic recovery package passed by Congress includes one-time payments for those with very low incomes and increases in food assistance benefits that will help some poor older adults. Investments in the job skills of those who want to work should also be a priority. (Fact Sheet)
Diversity in Retirement Wealth Accumulation
Americans save for retirement by building wealth in personal accounts, home equity, pension plans, retirement accounts, and Social Security. Social Security still accounts for the largest share of preretirement wealth for lower-income and minority households. The diversity in retirement income profiles must be considered in any discussions of entitlement reform. (Policy Brief)
Recent Events
It’s Not Easy Being Gray: The New Rules of Retirement
Policies are urgently needed to shore up Social Security and Medicare, get health care spending under control, and make staying in the labor force at older ages easier, while still protecting disabled workers. This policy brief summarizes a wide-ranging discussion exploring how public policies might adapt to an aging population. (Podcast | Policy Brief)
Frozen Pensions and Falling Stocks: What Will Happen to Retirees’ Incomes?
On February 3, a panel of experts brought us up to date on how employers are adjusting their employees' retirement plans, how recent and prospective changes in pension offers and market values will affect workers’ retirement, and how policymakers might respond to improve financial security for new and future retirees. (Podcast)
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