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For many, no retirement at all?

Interest rates are at practically zero, and nest eggs have been battered by the stock market. And so many seniors find themselves still working -- or looking for a job.

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When Angela Gregor's mother became ill and needed long-term care in the 1990s, Gregor tapped her individual retirement account for funds and stopped making contributions. Then came the tumultuous stock-market ups and downs of the past decade, dealing the IRA another blow.

To make ends meet, Gregor went back to work part time in September, as a data-entry clerk at a senior center near Chicago. The 67-year-old hopes to retire by age 70, but says she'll have a hard time doing so if she can't sell her home.

"Everything is more expensive. I cannot retire, I wish I could," says Gregor. "Like most older people, my money is in my home. . . . I'm caught between a rock and a hard place."

Many older people are finding themselves in a position they never expected to be in at retirement age: still working or in need of a

And the laundry list of reasons just keeps growing. Already-battered nest eggs have taken beatings lately with the market's wild swings. With interest rates essentially at zero since 2008, income from Treasurys and certificates of deposit is pretty paltry. And the Federal Reserve recently said it would likely keep rates "exceptionally low" through mid-2013. On top of that, housing prices are still in the doldrums, leaving homeowners with much less equity to tap.

More than three in five U.S. workers in their 50s and 60s plan on working past 65 -- and 47% of that group say they'll do so because they'll need the money or health benefits, according to a 2011 study from the nonprofit Transamerica Center for Retirement Studies.


But in this tight labor market, working into your golden years isn't easy. And you'll have to make your age and years of experience come across as assets, not liabilities. In addition, with the current market upheaval, you'll need a financial plan that puts your savings on the fast track and takes into account how Social Security and Medicare benefits could be affected.

Staying the course

For many older workers, the easiest option may be to continue with their current employer. But that will entail making themselves essential.

Workers should take on new projects when possible. And it's crucial to stay on top of the latest technology; you don't want to be perceived as the old guy who doesn't know what's going on.

Older employees also can put their experience to use -- and on display -- by volunteering to mentor younger workers either formally or informally.

Dave Bowe, 70, says he has kept his position at Stacy Adams Shoe since 1977 because he has continued to be one of the men's footwear company's top-selling sales representatives. He says working has helped him pay for expenses related to his wife's disability and keep insurance that covers her medical expenses, though he also enjoys the job.

Bowe says he stays close with longtime customers, answering their calls at night or on weekends. When he had to cut back on overnight travel when his wife became disabled, he made up for lost business by aggressively pursuing new clients closer to home.

"I have to produce, or the company wouldn't let me work out here," says Bowe.

Of course, some workers may have to take illness or physical limitations into account. If you feel like you can no longer manage physical labor, late hours or travel, talk to your manager about moving to a different position, says Beverly Harvey, a career coach in Pierson, Fla. Suggest the position you'd like to move to and show how you're qualified for it, she says. If your boss is the one initiating such a conversation, chances are your standing at the company has already suffered.

Another option is phased retirement programs that let workers gradually reduce their hours, says Cornelia Gamlem, the president of human-resources consulting firm Gems Group. There also are job-sharing arrangements, she says. For instance, if you and a co-worker are both thinking of paring your work hours, approach management with a plan detailing how you could divide your time and responsibilities.

Just keep in mind that a change to your full-time status could affect your eligibility for benefits such as health insurance or a 401k match.