KING CITY, Ore. -- The shrinking economy is devastating many Americans retirement funds, forcing many to continue working long past retirement age.

Others who had already retired are returning to the job market because their 401(k) and funds aren't enough to live on.

Retirement age isn't what it used to be according to some of the folks in King City.

Shirley Bess said she’s 66, eligible for full Social Security benefits and remains on the job.

"We're both wanting to retire but it's kind of scary so I'm still working and we're just going to wait and see what happens," pharmacy clerk Shirley Bess said.

King City is a community made up mostly of seniors. Some retired years ago. They escaped the plunge of the Dow Jones average from more than 14,000 in 2007, to its close of less than 7,000 points Monday.

"A little over a year ago my husband decided to get us out of the stock market and we converted everything into cash. So we were very fortunate. We didn't lose a dime," said Lynn Kenyon whose husband retired last month.

Tony Dramov sold his pharmacy business in Lake Oswego some time ago, expecting to be retired by now. But instead he’s working at a pharmacy in King City.

"Social Security is not enough. You can crank down and live in a much more modest way. … We're probably going to (work) well beyond 66 as long as health holds out, and that's the key," pharmacist Tony Dramov said.

Stories are similar at stores and businesses across America. The prospect for workers of a certain age retiring, then having to re-enter the market in Oregon, keeps many of them right where they are.

"It took like 30 percent of his 401(k). So he said, 'Hmm, I think I'm going to be working a little bit longer.' We just want to make sure that it stabilizes, and we've downgraded our expectations," pharmacy clerk Diane Huffman said.

Economy Keeping Many Working Well Into 60s