While the nation's economy is on the mend after the great recession of 2008, many people who lost their jobs at age 50 and older are expected to fight for the rest of their lives.
The average person who loses a job after age 50 is expected to have an income 18 percent lower than people who kept their jobs, according to a survey by the retirement Research Center at Boston College.
In addition, the retirement years are expected to be difficult for those who have lost their jobs because pension wealth will be 20 percent less on average than for people who held the top jobs. And financial assets, such as retirement savings, would be about 30 percent smaller, researchers Matthew Rutledge, Natalia Orlova and Anthony Webb.
That could have implications for the nation's debate on deficit reduction over the next few years. The survey was made with a grant from the social security administration.
About 3.2 million people over the age of 50 were unemployed at the peak of the recession and, taking into account the ongoing economic pressure, are unlikely to tolerate the proposed cuts in social security and Medicare.
Even people who held jobs in the recession, hit by the sharp declines in home values and retirement savings, although those who resisted the urge to bolt from the blue a dipping stock funds in 401 (k) s and Iras probably regained what I originally lost. The stock market has hit new highs recently--restoration of wealth to those who held up investment. Those who dumped stock funds in a panic and have quit saving money market funds and savings accounts will likely recover the amount they had in 2007.
For those who have lost their jobs, with savings will be even more difficult.
In December 2009, the unemployment rate for older workers was 7.2 percent. At the peak of the recession, 3.2 million were out of jobs. Unlike previous recessions, when older workers tended to keep jobs, this recession that heavy price for people of all ages, while the length of unemployment was higher among older people, beating a record of 40 weeks in mid-2011.
"Workers who spend a long time away from jobs, particularly those approaching old age, skill atrophy and decrease risk of health, and may be difficult to persuade employers to hire them," the researchers said.
To assess the long-term effect of elderly workers who were unemployed in the recent recession, the researchers analyzed data for people who have lost their jobs in past recessions. Focused on how individuals who went through massive layoffs went 10 years later, and compared with those who had not lost the job. The sample of over 6,000 people who came from the Federal Government in the health and retirement study.
"The older employees will metatopismenoys end up significantly worse off than those who had lost their jobs," said the researchers. They noted that the batch job cutting that took place in the great recession would mean the "highest quality" workers came to lose jobs in 2009-10 compared with the other recessions when not dive as deep cuts in the workforce.
Those laid off in previous recessions, tended to be more vulnerable than the authority from other employees before the layoff. Had lower earnings and financial assets, such as retirement savings, was smaller than for other workers. Differences which continued for the next 10 years after the dismissals, and those who lost their jobs were more likely to shift again during this period.
People who lose their jobs during mass layoffs is 4.6 per cent less likely to work in eight to 10 years later, they found. It is 6.3 percent fewer chances to escape further redundancies over the next 10 years. And run about 11 fewer months during a period of 10 years.
With wages down and jobs less stable, seriously affected their savings and pensions. Accumulate 18.8 percent less economic wealth, including pensions.
Researchers said labour force participation by older workers will be greatly reduced in the future. You will be working around 23.7% in 2018. If the recession was more like the milder recession of 2001-2003, the researchers said, will be working approximately 27.5 percent. Barring any remissions, the figures show approximately 22.6 percent of older workers, usually will continue in the workforce.