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Occasional Paper

Publication Date



Extension of working years among those approaching “normal” retirement ages is receiving increased attention. Much of the impetus is financial. The weakening of private pension systems is leaving increasing numbers of those approaching retirement with inadequate savings. Rising health care costs and the erosion of retiree health benefits also encourages older workers to remain in the workforce. The current recession has greatly escalated the financial concerns of those who are late in their working lives. With the deterioration of financial markets, the values of 401K portfolios have declined enormously. Further, the decline in home prices has left many with substantial reductions in home equity. In addition, some mature workers are among those with home mortgages that exceed the market values of their homes.


Working Paper.



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