More people working till they die of old age

This story from the WSJ made me sad and reminded me of the consequences of poor retirement planning. My grandma worked until her mid 70s because she never had an extra pension. Don't let this happen to you!

During past recessions, older workers simply would have retired rather than searching want ads and applying for jobs. But these days, with outstanding mortgages, bank loans and high medical bills, many of them can't afford to be out of work.

With jobs so scarce, people in their seventh and eighth decades are up against those half their age in a desperate scramble for work.

The number of unemployed workers 75 and older increased to more than 73,000 in January, up 46% from the prior January. Among workers 65 and older, the jobless rate stands at 5.7%. That's below the national average, but well above what it was in previous recessions, including the recession of 1981, when it reached at 4.3%.

The growing numbers reflect, in part, an increase in the number of older workers. The percentage of people 65 and older who are in the work force rose to 16.8% at year end, from 11.9% a decade earlier. Among people 75 and older, the increase was even greater -- to 7.3%, from 4.7%.

As people live longer and stay in better health, some of them merely want the stimulation and challenge of a job. But for workers like Ms. Appleby, Ms. Bennett and Mr. Dase, the motivation is financial necessity.

Fewer people than in years past are covered by defined-benefit plans, such as company-sponsored pensions that guarantee them specific monthly income for life. Those with retirement investments have seen their values erode with the stock-market tumble. Others worked for smaller companies, or were self-employed, and never had pensions. Many are outliving whatever savings they might have had, especially by the time they reach their mid to late 70s. Mortgages and medical bills push others into the job market because Social Security and Medicare, though helpful and critical, aren't enough.

There are few programs to help older unemployed workers. Several states are developing pilot programs. The Obama administration is receiving proposals for new ways to connect workers 55 years and older with local jobs.