One by one, the clients who file into psychologist Rosalind Dorlen’s private practice in Summit, N.J., report how the stress from America’s financial meltdown is affecting their everyday activities. “To use the term panic is appropriate,” Dorlen says. “We’re seeing people spending money unwisely and impulsively. Still others are avoiding financial matters altogether, such as not paying bills.”

Some are having trouble sleeping, she says, others are not eating well, and a few have taken up smoking again. But most say they no longer feel in control of their financial future and well-being after the wild market swings of the past few weeks.

Constant news reports on home foreclosures, bank failures, the credit crunch, a $700 billion bailout for the financial industry and the steady erosion of retirement savings have jolted anxious and easygoing types alike. But for those nearer to retirement, or living on fixed incomes, the stakes are higher—and so are stress levels.

According to an American Psychological Association (APA) poll released in October, the miserable economy “significantly stressed” a whopping 80 percent of Americans in September, up from 66 percent in April. The survey compared the stress levels of more than 2,500 adults nationwide.

Among the respondents, women reportedly felt more anguish about declining economic conditions than men did—84 percent compared with 75 percent. And those over age 63 reported more stress (86 percent) than boomers ages 44 to 62 (83 percent) and those ages 18 to 29 (71 percent). However, when it came to day-to-day pocketbook issues, the youngest age group (83 percent) reported being more worried than boomers (79 percent) and those 63-plus (73 percent).

Katherine Nordal, executive director for the APA’s professional practice, says the emotional and physical toll from the financial crisis is potentially dangerous for people of all ages. “If Americans continue to experience these high levels of stress for prolonged periods of time,” she says, “they’re at risk for developing serious illnesses.”

A separate survey of working adults, released Oct. 27, found that 92 percent said financial worries were keeping them up at night. The poll of 1,137 people, conducted by ComPsych Corporation, a provider of employee assistance programs, said the biggest concern for respondents was the high cost of living (30 percent), credit card debt (29 percent), mortgage payments (14 percent) and declining retirement accounts (13 percent).

Alan Keck, a psychologist in Altamonte Springs, Fla., says the mounting stress his clients are carrying has “complicated their treatment.” He hears growing complaints about sleep disturbances, unintended weight loss, depressed mood and obsessive thoughts.

“I can tell you that the economy has played havoc with the plans of a few of my clients—everything from delaying the completion of the … divorce process because of inability to sell a jointly owned house, to full-blown anxiety and depression syndromes over threatened loss of retirement savings,” he says.

For older workers, a declining portfolio can be enough to provoke fear and panic. One woman in her 60s, who is planning to retire in two years, says she gave in to that fear two weeks ago when she bailed out of the stock market and opted for safer investments in money market funds and CDs.

“I was constantly worried that I might lose what I’ve built up,” says the woman, a publishing industry professional who asked to remain anonymous. “I don’t know if I did the right thing by pulling out of the market; we’ll see how things shake out. I just wanted to preserve what I had. Uncertainty when you’re nearing retirement is very stressful.”

Carole Fleck is a staff writer for AARP Bulletin Today.