In past downturns, workers expected that a market recovery would restore their losses, said Rep. George Miller (D) of California, chairman of the House Education and Labor Committee, at an Oct. 7 hearing on retirement security. Given the magnitude of recent gyrations in the stock market, that may not be the case today.
"My sense is that this somehow is different," said Representative Miller.
If nothing else, many workers may feel that they will have to work longer than they had previously planned.
"I'm terrified my retirement monies will be depleted," Mr. Beck says.
He has not given up completely on investing in the stock market. But he won't move back into the market until he believes the bottom has been reached.
"You know what they say about investing – don't try to grab a falling knife," says Beck.
A new AARP survey of workers over 45 years of age found that 65 percent believe they will have to work longer if the economy does not improve. In this demographic cohort, whose youngest members can just begin to see retirement glimmering on the horizon, fully 69 percent added that it is likely they will spend less after they stop working, unless in the meantime good times return.