I just read an interesting article that I missed from May. Baby Boomers are taking money out of or not funding their retirement plans to help with the current economic slowdown. That's why it is so important to have an emergency fund if you don't have one already.

Broke boomers may be forced to delay retirement

Growing numbers of preretirees dip into 401(k)s, skip bills and medications

Consumers 45 years and older are raiding or compromising their 401(k) accounts, shirking monthly payments and skipping regular medications and doctor visits at an alarming rate, according to the American Association of Retired Persons.

As many as 25% of Americans from the ages of 45 to 64 said they are taking these steps to stay financially afloat, the AARP found in a recent study. That puts them at a decided disadvantage when retirement rolls around, particularly if they have subverted their health, and may lead to putting that retirement on hold.

At the same time, Standard & Poor's reports that the average American household savings rate remains at 0%, making it "more difficult for older Americans to finance their retirement."

"This is a horrific scenario," said Tom Nelson, chief operating officer of AARP. "People are feeling this pinch in the short term ... but the long-term consequences that are facing these individuals and our economy for years, if not decades, are frightening."

The S&P report, which calls Americans "dangerously unprepared for retirement," notes that the poor performance of asset markets in recent years is hitting the piggy banks of even those most primed for retirement. The S&P, for example, is on track to have its worst decade performance since the Depression.

Indeed, 50% of those surveyed by AARP said the value of their 401(k) and other investments have dropped over the last 12 months. One-quarter of retirees said their golden-years income has fallen in tandem with interest rates.

At the same time, the prospects of retiring early, or even on time, are dimming. The AARP study found that one-fifth of those who said their stock portfolio is lighter are postponing plans to retire. About 32% of those people are at traditional retirement ages, 55 years old to 64 years old.