Coveragejet

4 Reasons Your Retirement May Be Delayed
(2nd in a four part series)

Stock Market Slump
The $7 trillion decline in stock holdings between 2007 and the second quarter of 2009 is also contributing to retirement unpreparedness, primarily among higher-income households. The disappearance of traditional pensions for private-sector employees in favor of 401(k) plans means workers are directly exposed to stock market shocks. Members of generation X, who are more likely to have only a 401(k) retirement plan, are at a higher risk of having to cut their standard of living in retirement (56 percent) than early (41 percent) or late (48 percent) baby boomers, many of whom still have traditional pensions. "Almost no gen X-ers in the private sector are going to be covered by a defined benefit pension, and they are going to live forever," says Munnell.