Would-Be Retirees Plan to Work Longer in Down Economy

February 5, 2009 (PLANSPONSOR.com) - Delaying retirement is one of several life adjustments pre-retirees are making to weather the current economic climate.

CPA financial planners surveyed by the American Institute of Certified Public Accountants reported that nearly 35% of their clients who are approaching retirement age are postponing leaving the workforce because of recent economic conditions – a 3% increase from the 32% cited last year. According to a press release on the survey, a majority of those who are postponing retirement (67%) plan to delay retirement no more than five years.

Only 9.6% are postponing retirement for six years or more, the survey found.

Other adjustments in spending CPAs’ clients are making include:

  • postponing vacations – 60%,
  • postponing car purchases and/or the buying or selling of a home – 52%, and
  • cancelled home renovations – 42%.

Only 11% of CPAs have clients who have no plans to change their current spending, the press release said.

The survey was conducted in December via a questionnaire emailed to members of the AICPA Financial Planning Membership Section.