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Baby boomers hit hard by economic crisis

Losses in the stock market, plunging home values, and the weakening economy are devastating the retirement plans and options of baby boomers.
 
The article “Baby Boomers Scramble to Reassess Future: What to Do When Your Retirement Disappears Before Your Eyes” on ConsumerAffairs.com does a good job in laying out how the country’s economic woes are impacting boomers. It offers these facts and figures:

  • The stock market lost 27 percent of its value between September 30, 2007 and September 30, 2008, a roughly $7 trillion drop. Many [baby boomers] have their retirement savings in stock portfolios, which in some cases have lost nearly 50 percent of their value in the last few months – much of it in the last few weeks.
  • The average home value fell 3.9 percent in just a little over a year. Boomers who happen to live in one of 20 metro areas that enjoyed the highest price appreciation have been even harder hit, with prices declining more than 16 percent over the same period.
  • A significant [economic] downturn could lead to downsizing, or of firms going out of business altogether. New York City is bracing for the loss of as many as 160,000 because of the collapse of many banks, brokerage firms, and hedge funds.

What does the article advise boomers to do?
 
Stay in the labor force longer to boost retirement income. However, ConsumerAffairs.com points out that this may be tough with layoffs mounting and companies shutting down their operations.

Copyright 2008, Rita R. Robison, Consumer Specialist

Comments

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Amy Sherman

The economy is forcing us boomers to re-invent ourselves. Many of us are starting our own businesses to bring in some extra money. Service oriented operations seem to be in vogue, with boomers becoming coaches, trainers, consultants and how-to authors. Out of necessity, we are creating a new aging population that will stay active and thrive into "old age".

Isabella Coldivar

This is so disappointing to see baby boomers have to potentially push back retirement because of the current state of the economy.

However, in this current state of turbulence, there still some fun to be had, right? These are the golden years after all...

AARP is a great source of services and information that can be beneficial to the quality of life. What's great about AARP is that a membership comes with prescription and travel discounts!

AARP has teamed up with talk show host, Cristina Saralegui and made a fun, customizable video and you're just a click away from being the next guest on Amigos Live! Check out http://www.upclosewithcristina.com/video to learn more and make your own video!

Also, you can enter to win an all inclusive trip for 2 to Miami while you're checking out the site! (And even if you don't win, there's still those great travel discounts that come with the membership!)

Definitely check out AARP for yourself or a loved one. There are really are some great benefits to joining!

I hope it's alright that I commented on your blog -- wanted to let you know about the fun video with Cristina and AARP's great benefits. If you have any further questions, please don't hesitate to email me.

Thanks!
Isabella Coldivar
AARP Ambassador
isabellaAARP@gmail.com

Rita

Thanks for your comment.

Rita

Rita

Yes, these economic times are tough for boomers. Good point on how boomers are re-inventing themselves so that they can stay active and thrive in retirement.

Rita

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