More People Retiring Despite Poor Economic Times

More Retirees Means It's a Good Time to be a Financial Planner
By: California Institute of Finance
 
March 12, 2012 - PRLog -- According to a study, "The Market Crash and Mass Layoffs: How the Current Economic Crisis May Affect Retirement" by Courtney Coile and Phillip B. Levine, retirement is on the rise. With the economy in the situation that it's currently in, this has many people scratching their heads wondering why so many people are deciding to retire.

The U.S. stock and housing markets have seen a dramatic decline over the years, which leads many to believe that retirement accounts will shrink and home equity will fall, which is why it's expected that older people will continue to work at later ages than in previous years. Studies show that this isn't the case.

According to the U.S. Office of Personnel Management, the retirement rate of full-time employees was 3.5 percent in 2006, 3.7 in 2007 and 3.75 in 2008. The numbers continue to rise every year and Coile and Levine suspect it may be for a several reasons.

A sudden surge in Social Security claims, lead the authors of the study to believe that many people have simply put off benefits and retirement until now. Because of the weak labor market and struggles to land a job, their money is dwindling away and they decide to call it quits and tap into their benefits.

With the poor job market and increasing amount of retirees, it's expected that the need for financial planners will be on the rise. 61 percent of Americans often live paycheck to paycheck, according to a poll taken in 2009. 35 percent over the age of 65 depend entirely on social security.

Financial planners will not only be in higher demand for retirees, but also for younger generations who are witness to the retirement crisis and current economic trends.

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The California Institute of Finance offers an MBA program in financial planning with the California Lutheran University. The program can be completed entirely online, or on-campus. Visit http://www.callutheran.edu/schools/business/graduate/cif/
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Source:California Institute of Finance
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