Falling Stocks Fuel Fear Of Rising Retirement Age

By Jay Gormley & Jason Allen, CBS 11 News

GRAPEVINE (CBSDFW.COM) – At 51-years-old, David Ball is still running marathons. The Grapevine resident says a healthy life style is the key to success.

Ball says he plans to live a long time, because frankly, he feels he’ll need to work well into his 70s before he can retire.

“I started thinking the other day that I really better watch what I eat even more so and really focus on staying healthy and fit,” said Ball. “I need to be able to take care of things around the house and in my life.”

Many people in their 40s and 50s are feeling the painful equation. When the market drops like it did Monday, so do their 401ks. It seems the only thing going up these days is the retirement age.

“It worries me for sure,” said Judy Hendry of Richardson.

Judy and her husband Steve face an uphill battle. Steve is a realtor working in a housing market that has seen better times.

“It’s been pretty tough the last three years; hoping and praying that things would continue at a steady pace,” said the 53-year-old. “Naturally, the real estate business is kind of like a rollercoaster.”

Judy is a physical therapist at a retire community. She contributes to a 401k, but is taking a wait and don’t look at it attitude. “I don’t think we’ll have enough to feel comfortable retiring. You just can’t count on it, she said”

People in their 40s and 50s are being advised to ride it out over the long haul. But with their 60s just around the corner, the long haul isn’t so long anymore.

With the market drop, there’s also the prospect of higher interest rates for homebuyers.

“We’re looking at calling the realtor and saying we need to move on this, like, ASAP,” said Keven Markham, a Frisco homebuyer.

Experts say some homebuyers and sellers may need to move quickly, because if the interest rates increase they may be unable to afford the home of their dreams.

But for those with more long-term plans, they may not need to panic. There have been no significant changes in the overall economy since last week.

“Obviously, it had a big impact on the stock market, but that might also be a recognition that the economy’s much weaker than we thought it was and therefore the stock markets are reacting to that as much as anything,” said William Crowder, a University of Texas at Arlington professor.

Comments

One Comment

  1. Don "Crude" Craig says:

    “It seems the only thing going up these days is the retirement age.” ????

    Are you kidding me, retirement age is the ONLY thing going up?

    How about:

    fuel costs
    grocery costs
    insurance premiums
    copays
    state and local taxes due to all of the budget crunchs

    Need I continue?

  2. fredpat says:

    Playing the stock market sucessfuly requires focus, analysis, and most of all, luck and instinct. Few people have what it takes, and those are the ones who get rich. However, it takes many many loosers to make a big winner, and this is what has happened. There are a limited number of pieces on the pie.
    The issues Washington is facing are not-fixable. The math does not work out. Realizing this, many senior people know they cant retire in this era. A large portion of new walmart workers are grandparents or greatgrand parents stuck with supporting several generations of boomerang kids who too proud to work for low wages.

  3. oldman69 says:

    Thanks to the non caring reps and tp- they are getting what they sowed back to themselves.By the time they think they can get rid of OBAMA there won’t be a country for them to save -as if they could ever-they should look back to next to Christ-Reagan for the start of our downfall-free markets-shipping our jobs overseas-tripling the national debt-sending arms to iran-iraq-the list goes on and on-wallow in it Reps-too damn bad you’re taking the rest of us with you.

  4. RussP says:

    The stock market is a long term investment, people needing their money in the next few years should not be invested in it. Over the long term, I’m not aware of any investment that has historically done better than the stock market. Too many people forget the basic rule of buy low and sell high. Instead they wait and buy when the market is already up and doing well and then panic when there is a drop and sell at a loss.

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