Survey: 1 In 10 Boomers Now Borrowing For Everyday Bills

NEW YORK — The economic downturn is hitting roughly one in 10 middle-aged and older Americans especially hard, compelling them to borrow money for everyday living expenses and to seek help from family, friends or charities, according to a survey released Tuesday by the AARP.

In the telephone survey of 1,002 adults 45 and older, nearly four in 10 said they had helped a child pay bills or expenses. Among retirees, one-third said they'd helped their children pay bills. Eight percent said they'd helped a parent pay bills or expenses. The survey's margin of sampling error was plus or minus 3 percentage points.

One-third of survey participants said they stopped putting money into their 401(k) or retirement account and 14 percent said they had cut back on their medications.

"We have patients coming in fewer times," said registered nurse Tucky Franz of Salisbury, Md. "They'll cut back because of the copay."

The majority of baby boomers said they were finding it more difficult to pay for essentials and utilities, and six in 10 said they had cut back on eating out and entertainment.

James Dyas, 75, of Sherman, Conn., said he and his wife go to their favorite Mexican restaurant about half as frequently as they used to. "About all the money we have goes to buying gasoline," he said.

While the survey doesn't show large numbers of people making radical changes _ taking second jobs or moving to a smaller home _ it did find that more than one-quarter of those surveyed are having trouble paying their mortgage or rent.

Compared with older people, a greater percentage of younger baby boomers, those 45 to 54, said they were cutting back on medications, prematurely withdrawing retirement funds and postponing paying bills.

"For the younger boomers, it's been an especially rude wake-up call," said Jim Dau, a spokesman for the AARP, a nonprofit that advocates Americans 50 and older.

Debra Koziol, a 48-year-old hospital finance worker in Rhode Island, said she's started carpooling to work with her sister a few times a week and packing lunch every day.

"The food is better," she said. "Some of this is creating better habits, not so much waste."

Comments

[doc1400]

THE MOST IMPORTANT HIDDEN ISSUE IN AMERICA - POVERTY.

in 7 short years Bushie has broken the U.S. economy.

BEND OVER AMERICA AND ASSUME THE POSITION!!!

[muffler]

The greatest generation gave birth to the trust baby generation. This is the generation that didn't invest in America they wanted the investment created by their ancestors to spend NOW. They didn't build anything they just consolidated it and sold it off. What is left is the remains of an estate sale - scraps. I feel sorry for the next generation or two who will have to rebuild.

G.W. Bush is the perfect example of this breed. Failures deemed success or trying to impress each other by making lame comparisons to past greatness because they really never created anything themselves. You can see it everywhere.. the reuse of other generations work - music, art, fashion etc.

It's obviously not true of everyone or everything, but enough of them in the right places to cause massive damage. The frat brothers took over from the smart students. I remember when being elite meant that you we exceptional now it's a scarlet letter.

[biwee]

I have seen polling data that indicates about 1 in 4 in this country has no liquid assets, and about that same number says that they are unable to save anything. I am retired on a fixed income, and think it a BAD month when I can not save/invest at least 15-20 percent of my small income. And, when I start early Soc Security in about 18 months, my saving/investing will include all the additional S/S income.
BUT, I drive a fuel efficient 6 and 1/2 year old vehicle, live in a modest house, and write down a budget at the end of each month for the next month. So, when I hear of people in dire financial straits, I wonder if they have a cell phone, or cable TV, or a big screen TV (I have none of these). Or, they they drive a gas guzzler?? Or, how about thousands of credit card debt??? Excepting those who are hit with disability, lose a job, or have big medical bills, I conclude that those in a bind financially only need to look in the mirror to see the problem.

[MarciaJ720]

Sadly, "Deficits Don't Matter Reagan" has caused this entire country to run their households like the Government runs their finances - with debt (those tax breaks and rebate checks are being backed up by China and Saudi Arabia who will rake in the interest due on money that wasn't there to give in the first place).

When they changed the highest tax rates for wealthy Americans (claiming it encourages investment, when most money invested today is already in tax-free retirement accounts like IRA's or 401K's) they began the slow decent into Rich vs. Poor as GREED and the POWER that money buys always kicks in when you look at human behavior through all societies for thousands of years.

Reagan's policies, including deregulation of the media industry - wow, shall I say anymore as to what that man (i.e. Nancy) did to this Country. Some things aren't known right away but given 20 years you start to get a feel for how policies of yesteryear affect today.

[KOisGod]

Great discussion today on the Tom Hartmann show about the millennial generation.

Basically it's this: "Roughly 80 years ago was the Great Depression and World War II. Roughly 80 years before that was the Civil War. Roughly 80 years before that, the Revolutionary War. Roughly 80 years before that, Glorious Revolution of 1675-1704. Roughly 80 years before that, the Armada Crisis of 1569-1594. And roughly 80 years before that the War of the Roses (1459-1487)."

In each 80 year period, there are four turnings, produced by each of the four generations. The Fourth Turning is the one of greatest danger, maximum impact upon the world. And it"s due to happen any day now -- if it"s not already underway. "

Check it out.

http://www.thomhartmann.com/index.php?option=com_content&task=view&id=743&Itemid=9

[Wiredwilly]

No, the people that stuck it to future generations were the Republicans who in 1913 allowed John D. Rockefeller, J.P. Morgan, and Paul Warburg to create the Federal Reserve Bank to usurp the power of Congress to coin currency. They let private bankers begin charging citizens interest on the money they printed, a service Congress provided for free from 1776 until 1913. When you pay income tax it doesn't go to the Government, it goes into the private bank accounts of the Rockefellers , Warburgs, and Morgans. They have been the primary cause of the Great Depression, World War ll and the Gulf Wars. Only Ron Paul has the brains to figure it out , so therefore he is ignored and people look to politicians without a clue like McCain , Clinton, and Obama. It's like looking to the Three Stooges to cure cancer.

[vippy]

I said this all along. We let the good candidates go away already, Ron Paul or Dennis Kucinich.
Rest are more of the same. But then the media has a lot to do with it, they just did not give those
two any time. Besides, the Americans are not ready to hear the truth, so we meddle on.

[WIpatriot]

You guys understand the role of MSM, to keep us occupied with drivel while the theft continues.

[ReasonIsMyReligion]

This country, and its citizens, are burning the furniture to keep the house warm.

Two of my four grandparents had a higher standard of living than my parents. Two about the same.

My parents have a higher standard of living than I.

Something's not right.

[aristippe]

"My parents have a higher standard of living than I."

get a job and move out of their basement

[ImmanuelGoldstein]

Doing what? The jobs just aren't there. The three biggest areas of job growth in America are Cashier, Janitor and Truck driver.

[Over40]

Oh, please! You come from a generation of spoiled rotten whiners! Just who
grew up in those "macmansions" with every conceivable luxury and comfort and
advantage? That said, however, I agree that a 3000-4000 square foot home is
a stupid waste, but, Lord knows, not all boomers have them!

[DFL]

THIS IS THE MESS THE CONSERVATIVES HAVE GIVEN US!

[WIpatriot]

But, but. but...it's not their fault.

[RetireGreen]

If you choose a Green, or conservation lifestyle, you don't need as much money as you think. Also, if you choose a green retirement, you can retire on a lot less savings. Consumption is killing the boomers, financially, physically, and spirtually.

[JoeBlough]

But the Republican empire demands profits from everyone. Now is when they need you the most. Increase spending. And vote against your economic interests. That would be Republican.

[Dayahka]

My heart really bleeds for these people. I mean, how can you not feel sad and depressed when they can't buy their 5 dollar coffees and hundred dollar meals and drive 200 miles to see a sunset? And who can't feel great sympathy for these poor folks who take 50 different pills a day for imaginary and invented illnesses--at a great cost to them (or the government) and great profit to the pharmaceuticals who have invented all these new diseases.

[aristippe]

"pharmaceuticals who have invented all these new diseases."

your "expert" opinion

[WIpatriot]

I gots a case of RLS-Restless Leg Syndrome, and I know we gots pills for that.

[olephart]

"The economic downturn is hitting roughly one in 10 middle-aged and older Americans especially hard, compelling them to borrow money for everyday living expenses"

I believe that about 7 in 10 white males in this group supported George Bush. Talk about chickens voting for Colonel Sanders and shit coming home to roost.

And yes I am one of the 3 in 10 and no I'm not having any financial problems.

[ShawnMichel]

"While the survey doesn't show large numbers of people making radical changes _ taking second jobs or moving to a smaller home _ it did find that more than one-quarter of those surveyed are having trouble paying their mortgage or rent."

A 'radical change' is ... to downsize? Lord.

See, the Boomers and their McMansions, and their Hummers, and their ballooning mortgage payments, and their suburban dystopias, have had this coming for decades. And rightfully so. Every attempt to talk reason to them--and there are reams of books, lectures, op-eds, and on and on that tried--were met with absolute derision, accusations of communism and socialism (yeah, I know, like--what??), accusations that those warning the Boomers were unpatriotic (double--WHAT??), and the herd-animal mantra, recited as if it were tape recorded directly into the Boomer's head, that being that he DESERVES and is ENTITLED to his piggishness, his 'Murkan Dream. Uh-huh.

And now the bill is coming due. And you want me to feel bad for them? No way, Chester.

[KillTheMessenger]

Couldn't have said it any better. Right on the money. Thank you!

[KillTheMessenger]

To be perfectly honest with you, I have seen people in financial trouble who had to be helped by their families and I even offered my own help. However, in no case was it the circumstances that led to the final financial crunch. All these people had overestimated their buying power and had spent money on things their neither needed nor could afford.

The US has become a society which defines people by how much they spend. While responsible adults do not give in to this pressure, people with unsettled emotional needs usually do. Our whole advertising culture is targeting these "victims" professionally as the most easily influenced group.

As far as jobs are concerned, education is key to security. My parents invested basically all their earnings in mine and they did not own a house until after they retired and I could help them to buy one. In return for that investment I was never out of work, even though I work in one of those professions which are allegedly shipped off-shore. I never noticed and always got the job I interviewed for. That I feel rather secure can be attributed to one thing and one thing only: I never tried to become rich quickly and I always strived to be better than others in my work. There is no secret other than what made the parents of the baby boomers great: perseverance.

[Donnat]

everyone just relax. John McCain has assured us we're all better off than we were in the 90's!!!!!

[MikeDu]

I've got a good friend in this predicament. After a string of jobs either packed up & shipped offshore or bought up by vile speculators willing to sacrifice their employees security for personal profit (a.k.a. former Gov. Romney), he's finally reduced to living off a pitiful teacher's salary with no health benefits. Alot of pundits couch this topic in terms of people struggling to maintain a middle-class lifestyle. That was a couple years ago, now its people simply struggling to keep body and soul together.