Working Longer: Executives to Postpone Retirement by Average of 7.5 Years Due to Losses in Current Market
TheLadders.com Survey of $100K+ Executives Finds Majority Suspending Retirement Account Contributions, Many Limiting Children’s College Options
NEW YORK, NY (February 5, 2009) - The severe economic downturn of the past several months will result in executive-level workers - those who earn over $100,000 annually - spending an average of 7.5 more years in the workforce than they initially planned. According to a survey of 1,162 executives conducted by TheLadders.com, the world's leading online platform for the $100K+ job market, the majority of the nation's top wage earners have also stopped contributing to their 401k retirement accounts and many expect to limit their children's college options due to losses experienced during this financial crisis.
Following were some of the survey's key findings:
Working Longer:
- 86% of executives surveyed said they would have to work more years before retiring to compensate for the losses in their retirement savings accounts.
- On average, those executives expect to work 7.5 years longer than they had initially planned.
Dipping into 401ks:
- 58% of executives surveyed said they have stopped contributing to their 401k retirement accounts in the last three months.
- 40% said they have dipped into their retirement savings to help weather the current economic crisis.
Impacts on College Savings:
- 50% of executives surveyed said they think their children's college options will be limited by the financial crisis.
- 40% have suspended contributions to their children's 529 college savings plan.
"The downturn in the economy is forcing people to make tough financial decisions that will impact their current state of affairs and their futures," said Marc Cenedella, founder and CEO of TheLadders.com. "The sooner people are able find new jobs, the sooner they will able to get back on track and start re-investing in their futures."
This survey was conducted in January 2009 and had 1,162 respondents. It is statistically accurate to within +/- 2.87 percent.