New Study Shows Many Americans Planning to Delay Retirement Up to Five Years Amid Economic Downturn
Market Conditions Affect Lifestyle Choices

NEW YORK (February 5, 2009) – After a year in which the United States saw rising job losses, crashing financial markets, deep reductions in consumer confidence and poor pension performance, a new study by the American Institute of Certified Public Accountants shows clients of financial planners have made adjustments in their lives to match the changing economic environment.

CPA financial planners surveyed reported that nearly 35 percent of their clients who are approaching retirement age are postponing leaving the workforce because of recent economic conditions. This is 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. “People are living longer and getting more satisfaction from working later in life. At the same time, the market downturn has reduced wealth and CPA financial planners are seeing clients delay retirement plans as a result.”

Sixty percent of CPA financial planner 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.

The study surveyed CPAs who hold the Personal Financial Specialist (PFS) credential, which the AICPA offers exclusively to CPAs who are committed to financial planning as a practice discipline and have demonstrated expertise in financial planning.

“CPAs assist their clients’ in understanding their risk tolerance, structuring investment strategies to match their objectives,” stated Bob Jazwinski, chairman of the AICPA’s personal financial specialist credential committee. “During downturns in the economy, we work with our clients to reevaluate both risk tolerance and asset allocation to ensure their finances are properly managed.”

CPAs holding the Personal Financial Specialist credential are experienced professionals who are in the best position to help their clients’ to stay on track with their financial plans even when the economy takes unexpected turns. CPAs have the education and expertise to help people develop financial plans that anticipate and protect against downturns.

Methodology / Background Information 
The survey was conducted in December via a questionnaire emailed to members of the AICPA Financial Planning Membership Section. Of the 191 respondents, 55 percent manage clients with portfolios less than $1 million in assets; 42 percent have clients with holdings worth more than $1 million in assets under management; 3 percent did respond. The margin of error was plus-or-minus 4.5 percentage points. According to the 2007 AICPA/Moss Adams CPA Financial Planning Practice Survey polling 431 practices, the average assets under management is over $120 million.

About the AICPA
The American Institute of Certified Public Accountants (www.aicpa.org) is the national, professional association of CPAs, with more than 350,000 CPA members in business and industry, public practice, government, education, student affiliates, and international associates. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination.

To further support members and CPAs, the AICPA maintains the Economic Crisis Resource Center (www.aicpa.org/economy). With more than 200 items, the site is the most comprehensive online resource for the CPA profession in this economic environment. The AICPA maintains offices in New York, N.Y., Washington, D.C., Durham, N.C., Ewing, N.J., and Lewisville, TX.
Media representatives are invited to visit the AICPA Online Media Center at www.aicpa.org/mediacenter.

Questions, comments, feedback contact:

Judi Kulm, Communications & Media Manager
312-993-0407 ext.251 or 800.993.0407 (Illinois Only)