According to a survey recently conducted by research group CoreData, one in four self-funded retirees have been forced to return to work, or plan to do so as a result of their shrinking retirement nest eggs.
The Australian has reported that four out of 10 self-funded retirees surveyed had lost more than $100,000 in the market downturn, and that more than one in 10 had lost half their invested wealth (excluding unlisted property).
Due to the market downturn 26 per cent of retirees have been forced to return to the workforce or were planning to do so to make ends meet.
CoreData partner Craig Phillips stated that because Australia has high proportions of direct share owners and the slump in the sharemarket brought on by the global financial crisis has caught many people at retirement or near retirement off guard.
With very little or no time to recover many older Australians are now having to scale down retirements and having to work longer. A lot of retirees had to adjust by cutting back on spending with almost 50 per cent already doing so.
One out of 10 stated that if it was necessary then they would have to sell their homes and buy a cheaper one to recoup some of their losses. Mr. Phillips also noted that more than seven out of 10 retirees had kept faith in the shares and not withdrawn the majority of their invested assets from the market.