Aug 12 2008
Those approaching their retirement during times of economic downturn are being urged to consider all their options carefully.
Running out of money while the economy is strained is a real possibility, a Forbes article warns.
Speaking to the news provider, T Rowe Price investment analyst James Tzitzouris said: "Any money that retirees take out of their portfolios or that they lose in market-declines in the first five years of retirement has a higher cost."
He explained that this happens because such funds would not be invested to earn returns when markets subsequently recovered.
Another option would be to shelve plans to retire at the age of 65 or consider continuing to work at least in part-time employment in order to offset negative financial implications.
Financial planner Marty Palumbos of Lincoln Financial Advisors told Forbes that at this age, many people may be at their peak as they have plenty of skills and should carry on working if they are able to do so.
Many financial experts highlight the importance of starting to save money as early as possible in order to ensure a comfortable pension when the time comes for them to retire.
