Boomers Aren’t BoomingSubmitted by bobbyw24 on Sat, 01/08/2011 - 21:23
Despite their huge numbers and cultural and financial impact on the economy, the Baby Boomers (born between 1946 and 1964) have largely been unwilling to face fiscal reality. Robert Samuelson, a frequent writer for Newsweek, noted back in 2007 that “We [he is a Boomer] are trying to pillage our children and grandchildren, putting the country’s future at risk in the process. On one of the great issues of our time, the costs of our retirement, we have adopted a policy of selfish silence.”
Numbering 76 million, controlling over 80 percent of personal financial assets and more than 50 percent of discretionary spending, they are turning age 65 at the rate of 10,000 every day. And reality is setting in.
Dave Carpenter, writing in the Washington Post, says that “Through a combination of procrastination and bad timing, many baby boomers are facing a personal finance disaster just as they’re hoping to retire.” The average boomer has less than $200,000 in retirement savings accounts such as a 401(K), or an IRA, and most boomers have no formal plans at all. In 2007, two out of three boomers between ages 55 and 64 had mortgages averaging $85,000, and many of them are upside down thanks for the Great Recession. Many are taking early retirement from Social Security, even though it means a lower benefit than if they waited until age 66.