Financial crisis threatens retirement plans of the Americans by Zuzana Zelenakova

Most of the working population of the United States of America sees their future retirement plans gradually disappear before their eyes. The financial crisis hit hard also the retirement savings accounts and funds, which reportedly lost about $2 trillion in the past year and something. About 10 percent was lost in the past three months. According to Peter Orsagh, the head of the Congressional Budget Office, many workers will be forced to delay their retirement because the value of their retirement savings has declined. For example Denise Edwards, aged 62, knows that she will have to work at least another ten years selling condominiums as she does. "We just have to work for as long as possible. And we're going to have to count on our (two) daughters," said Mrs. Edwards who lives in Washington. "Unlike Wall Street executives, America's families don't have a golden parachute to fall back on," said Republican George Miller, the chairman at the House Education and Labor Committee. "It's clear that their retirement security may be one of the greatest casualties of this financial crisis." When it comes to the investors in the market their investments fell almost 24 percent as compared to the situation one year ago, but the worse thing is that there is strong conviction that it won´t get better any soon. Well for many Americans the solution is to hold the line longer than they expected. Some of them even retired but were forced to find a job again. Also there is fear among the experts that people will react inadequately to the bad news and start pulling money out of their accounts. But such a move could only make their losses bigger. According to Jerry Bramlett, the head of BenefitStreet Inc., a retirement savings plan administration company, one of the ways for people is “consider less volatile investments”.


related story: http://news.yahoo.com/s/ap/meltdown_retirement;_ylt=Av3sX4dQEPZpO0dOHWI1uL6s0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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