Part 2: Falling Expectations

by KYW's Pat Loeb

Many more people are working past retirement age -- some because they want to but some because they have no choice.  And staying on the job out of economic necessity is a situation more Americans are likely to face in the future.

Maureen Eble says she and her husband did everything they were supposed to do for their old age:  they saved and they invested:

"I was taught very well about planning for retirement."

But her husband suffered an untimely death at age 53 and Eble worried about her finances, until his uncle called with

what he said was the answer to her concerns:

"He said, 'I'm so excited to tell you my personal financial man, Bernard Madoff, is going to take you as a client.' "

Eble lost everything she and her husband had worked for.  And her retirement plans?

"I don't have any retirement plans now.  I have to just keep working."

What happened to Eble is extreme but not unique.  The three-legged stool that allowed previous generations to retire at age 65-- Social Security, pensions, and personal savings -- is wobbling.

Financial advisor Tema Steele says baby boomers are increasingly relying on 401-Ks:

"Pensions have been dismantled to a large extent."

But those 401-Ks took a big hit during the market downturn two years ago, and some still haven't recovered:

"So you have to be a little bit more careful. You can't be too high-flying in your selection within your investment vehicles."

Steele counsels conservative investments in a diversified portfolio to reduce risk.  But many people will be working longer to reach that magic amount that will allow them to retire.  And a few -- like Maureen Eble -- will face catastrophic loss.

(Eble:)  "And we will work until we're ill and we can't work anymore."

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