Top executives who have been paid lavish bonuses, even as their companies flounder, have been making headlines this week. But some executives complain they will have to delay retirement plans and struggle to pay for their children's college expenses due to their diminished portfolios.
Approximately 86 percent of executives say they plan to work longer before retiring to compensate for the losses in their retirement accounts, according to an online survey of 1,162 executives who use TheLadders.com, a job search website for executive level positions with salaries of $100,000 or more. (A subscription costs $30 for one month of full access to the site, although some parts are free.) On average, the executives expect to work 7.5 years longer than they had initially planned.
It’s not difficult to see why these executives plan to delay retirement when you look at their savings habits. Many have stopped contributing to their 401k accounts in the last three months (58 percent) and dipped into their retirement savings to help weather the current economic crisis (40 percent).
Highly paid executives aren’t immune to worries about paying for college for their children either. Some 50 percent of the executives surveyed say their children’s college options will be limited by the financial crisis and 40 percent have suspended contributions to their children’s 529 college savings plan.