Lesson: The Best-laid Retirement Plans Melt Down

DAVID PITT

DES MOINES, Iowa (AP) — Planning for retirement has never been as complicated — or as important — as it is now.

Last year's financial meltdown was the second stock market disaster of the decade. Millions of baby boomers saw their savings wither, just when they were eyeing retirement.

The collapse of the stock market had much less impact on people in their 20s and 30s. They had less to lose and have plenty of time to recover. For many others, though, the decline in 401(k)s and other investment accounts will force them to make difficult choices. Many will work longer than they expected. Others will forget about buying a second home in retirement or traveling as much as they had planned.

David Rothberg, 56, an ophthalmologist in Palm Harbor, Fla., once planned to retire when he reached 55. When the dot-com bubble burst in 2000, he lost more than half his savings, and pushed back retirement to the age of 60. Then came the market crash last year. His new target is 62, six years from now.

The crash and its effect on baby boomers highlight the risks that came with the revolution in how people finance their retirement.