More Accounting Tomorrow Posts

70 is the new 65

February 5, 2009

Many Americans are planning to delay retirement, postpone vacations and reconsider buying or selling their homes as the result of the economy, according to a new survey by the American Institute of CPAs.

The survey of CPA financial planners showed that nearly 35 percent of their clients who are approaching retirement age are postponing leaving the workforce because of recent economic conditions.

This represents a 3 percent increase from the 32 percent who last year said they were planning to delay their retirement. A majority of those who are postponing retirement—67 percent—plan to delay it no more than five years. Only 9.6 percent are postponing for six years or more.

"What this suggests is that 70 is the new 65," AICPA Vice President James Metzler said.

But the economy is affecting more than just retirement decisions,
Sixty percent of CPA financial planners' clients are postponing vacations, 52 percent are postponing car purchases and/or the buying or selling of a home and 42 percent have cancelled home renovations.

Only 11 percent of CPAs have clients who have no plans to change their current spending.

Financial advisors may want to survey their own senior clients to see where they fall into the mix, and if they need some help with their decisions.

Comments (2)
Some companies are allowing seniors the option to work part time or have "bridge jobs," in which they have different responsibilities than they did in the past, easing them into retirement. Perhaps one of those responsibilities could be more of a training role?
Posted by Alexandra D | Friday, February 06 2009 at 1:43PM ET
CPA firm partners need to be planning on what they are going to do if all of their partners decide to work until they are 70. The challenge is to keep them productive and still transfer the client relationships to younger partners and future partners. I think it will be a big de-motivator to the Millennials when they see no room for promotion.
Posted by Rita K | Friday, February 06 2009 at 8:48AM ET
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