Investors Worried About Retirement Funds

By Craig Day, News On 6

TULSA, OK -- Bargain hunters are working Wall Street. Stock prices bounced up a bit on Tuesday, a day after a historic decline linked to the failure of the financial bailout package. The Dow ended up 485 points from Monday.

Many investors are worried, especially those near retirement age who are watching their retirement dreams crumble.

Investment experts say not to panic and that in the long run, stocks are still a good investment. But what if you want to retire in just a few years or are retired already and living off investments that have now taken a hit?

62-year-old Darlene Lorenz has been keeping up with the turmoil on Wall Street, the $700 billion bailout plan, and her own retirement savings.

"About five years away.  And I'm not nearly ready for retirement," said Lorenz.

Lorenz has some money socked away in a 401k. But now with the stock market losing 777 points in one day, she isn't sure she'll be able to.

"In this economy, I don't know how we're going to make it.  I don't know how I'm going to survive," said Lorenz.

With the economy in turmoil, labor experts predict more anxious older workers will be forced to postpone retirement.

The market took a trillion dollar plunge, having a direct impact on retirement accounts, pension funds and personal savings of millions of Americans. That includes 59-year-old Marteka Thomas.

"Everything is pretty bad right now.  It's kind of low, that's the first time I've seen the market like that," said Thomas.

Thomas came to the AARP Foundation work search program to find another job with more hours so she can meet her goal of retiring in five years. But, like Lorenz, she's unsure now whether she'll be able to.

"It's a big if.  I may not be able to retire, I may have to continue to work," said Thomas.

For now, many older workers don't have many choices other than working, watching and waiting with the hopes that answers come from Washington soon.

"I'm not looking for retirement for a long time.  I can't afford to," said Lorenz.

People within a few years of retirement are urged to make sure they're diversified. But for some their only options are to delay retirement until the market improves or to reduce withdrawals from their retirement accounts for a while until Wall Street recovers.