Older Americans think today's economic conditions are the worst they've ever seen.

When asked to compare the current economy to similar situations in the past, 53 percent of Americans over 60 said today’s conditions are worse, even though unemployment and inflation rates have been higher within the last 30 years.

Most recently, the retirement portfolios have suffered as investors sell off shares of financial companies and other holdings, worried about the strength of balance sheets across Wall Street. Rising jobless claims and fuel costs are compounding the worries.

The concerns are changing the way some elders spend their money, although it isn't derailing their retirement plans.

About 87 percent of Americans over 60 said they are cutting their spending, according to a survey by the MetLife Mature Market Institute.

Non-essentials such as dining out and travel are being cut by 82 percent of respondents. About 70 percent are trimming spending on essentials such as food and transportation. 

An in-depth look at the findings also revealed that women are tightening their belts more than men, while those who earn less are cutting back even more, said Sandra Timmermann, director of the institute. 

Headed for a Downturn
About 92 percent of those polled characterized the current state of the economy as “headed for” or “in the midst of” a downturn, and 50 percent predict the poor economy will drag on for an additional 12 months or longer.

Nearly two-thirds feel Washington is to blame. Democrats polled are far more negative about economic prospects compared to their Republican counterparts with 62 percent of the Democrats believing that the downturn will last more than 12 months, compared with 34 percent of Republicans.

“While there have been serious economic downturns in the past, it is clear that this group of people over 60 feel particularly vulnerable during this time of their lives," Timmerman said. "Yet, it appears that they are not, at this point, changing their longer range retirement plans.”

Of those who are working, about 73 percent said they would not postpone their planned retirement date because of the current economy. Meanwhile, about 16 percent are withdrawing or plan to withdraw more from their retirement funds than they originally planned.

Timmermann said she thinks it's a good sign that people are not panicking by withdrawing funds, but cautioned that a reassessment of finances and long-term planning may be necessary since people are living longer in retirement.