For Late Boomers, The Recession Hit Harder

Not the youngest, nor the oldest, but the people right in the middle are having a tough time dusting themselves off from the recession.

Research from Mintel, a market research firm, found that many younger Baby Boomers and older Gen Xers are spending less now, plan to spend less in the future and are more worried about their retirement than they have ever been.

Nearly half of this group, in comparison to one third of the entire population, say they "have only been spending money on necessities." And they're set on spending more conservatively down the road. More than half -- 51 percent, compared to 44 percent of the whole population -- say they plan to buy less unnecessary "stuff" in the future.

One reason younger boomers are being frugal may be because more people depend on them. According to Susan Menke, vice president and behavioral economist at Mintel:

"This is the 'sandwich' generation, burdened with educational expenses for their kids and, for some, healthcare costs for aging parents."

In an earlier report, the Center for Retirement Research at Boston College found that late baby boomers are the worst off in terms of retirement security. Carla Fried, reporting on retirement for CBS's Money Watch, explains why younger boomers will have fewer assets to support them during retirement than older and younger generations:

"We entered the work force too late to fully take advantage of the mega bull run from 1982-2000, and now we're so old we don't have as much time as Gen X to make up for lost 401(k) balances."

Many Baby Boomers, not just the youngest, are also concerned about the future of healthcare. According to a December Associated Press-GfK poll, 43 percent of boomers don't think they will be able to depend on Medicare forever.

Comments

[sloreader]

04:48 PM on 02/19/2011

Maybe late boomers and Gen Xers aren't buying more "stuff" because they don't think shopping is a cure-all for our national ills?

[escobar]

03:09 PM on 01/26/2011

The mjority of the next genertions will have even less.
This is why the rich want to end medicare and SS.

[aynrandfan2012]

07:24 PM on 01/20/2011

dont worry....democrats think reality doesnt exist....just become a liberal....and only have good thoughts

[KAL-EL]

02:19 PM on 01/20/2011

Things are going to be interesting in 15 -20 yrs.

We are going to see who the grasshoppers and ants are.

http://en.wikipedia.org/wiki/The_Ant_and_the_Grasshopper

[Pearldiver]

11:41 AM on 01/20/2011

I think we can blame Big Media for fanning the flames of greed and envy. Stop watching TeeVee. Stop buying those slick "Lifestyle" magazines. Stop living vicariously and notice how much less you want!

[escobar]

03:27 PM on 01/26/2011

I agree.
People are sold ideas about what they should admire
and what will make them happy.
We are engulfed in a sea of marketing, overwhelmed by impressions
that are mostly wrong and worthless.
The first step is to ignore the hypnotic electronic fireplace.
We still sit and look into a fire at night, except in the past we had our own thoughts.

[dbawden]

11:38 AM on 01/20/2011

It is difficult to plan for the future. I retired as a teacher after 33 years. My starting salary in 1971 was $7k/year. I retired making nearly $60k. During that time I saved, paid off my house, and had a frugal but workable plan for the future. Now my state retirement fund (Washington State) is only 75% funded and is looking shaky because the fund and its obligations were raided for other state priorities. I listen to the New Jersey governor blame the greedy cops, fireman, and teacher's retirement plans for his states woes and wonder what's next?

[RightnotLeft]

10:56 AM on 01/20/2011

I turn 50 this year and will retire comfortably at the age of 56 without social security. If you didn't plan for your retirement I feel for you.

[TRex86]

01:32 PM on 01/20/2011

Is that smugness or sanctimoniousness?

[RightnotLeft]

01:41 PM on 01/20/2011

Neither just plain old fact. Based on your posts you blame others for your misfortune. Wahhhh I don't have enough let me cry you a river. I feel sorry for those you advised financially.

[nkurland]

01:06 AM on 01/21/2011

I think its the voice of outright privilege saying "screw you I got mine, so just deal."

[AlwaysAnObie]

06:59 PM on 01/23/2011

I certainly hope that, when you retire at this relatively young age, you spend time & energy volunteering to help those who have not been as fortunate as you. If you try to find out why some of them are not in your position, you may be surprised to find out that planning for a long retirement is simply not an option for many and that you have been lucky in many, many ways.

[olddognewtrick]

10:00 AM on 01/20/2011

Let's use the empty nest metaphor. Most birds at some point in their offspring's history shove them out of nest...fly or die. I've fed you your last regurgitated worm...

[TRex86]

09:48 AM on 01/20/2011

As an elder Boomer I mastered savings in the early 80's and continued until 2000, when I made a career change, passing up retirement perks for personal growth. (I had even published articles on money management for young professionals). I had accumulated more than enough savings to be covered at age 65 so long as my principal grew at a compounded rate of 4-6 percent. Then along came Bush, who handed the economy to his "haves and have-mores" base.

Few appreciate the magnitude of the disaster of his administration. The rich kept getting richer. Hard working middle class people saw their savings evaporate. In my case savings simply didn't grow so that ten years later I'm sitting on the same amount of assets, too old to gamble for higher returns. Luckily, I can stay in the workforce as long as I want, and I plan to do so, but what about the young people trying to squeeze into the good paying jobs?

The colossal malfeasance of the Republicans seems to have been lost on most Americans, who fail to see that for 30 years only the top 0.5% have thrived while everyone else has been lucky (like me) to just stagnate. We have deceived ourselves into thinking it isn't class warfare when the super-rich get the spoils. We fail to see the disastrous results of Reaganomics. Now we hear a proposed retirement age of 70. Good luck finding a job coming out of college.

[KAL-EL]

11:33 AM on 01/20/2011

Face it, you are just whining because somebody else has more wealth than you do and that's just laughable.

Bill gates's wealth has no negative effects upon my standard of living.

[TRex86]

01:30 PM on 01/20/2011

I'm awestruck at your capacity to missread my post. I'm a fortunate one. "Luckily I can stay in the workforce as long as I want..." I wasn't looking for your sympathy or pity--but I guess I should spell that out so you don't get confused by nuance. My example is a best case scenario for the middle class. The contempt with which you right wingers hold average Americans is reprehensible, but your unnecessary defense of the rich is insane. You think they give a rip about you? Your statement about Bill Gates (who says he should pay more taxes) and other ultra-billionaires is pure ignorance.

[Antona Smith]

01:31 PM on 01/20/2011

As a younger boomer (May 1964), I feel the brunt of Reaganomics. I also agree with you 100%.

[TRex86]

01:37 PM on 01/20/2011

A consistent message that the wingnuts post is their "I got mine, jack" arrogance. the cultural dimension of Reaganomics has been scapegoating the "have-nots" until now they constitute 99 percent of the population. Yes, 99% of Americans are lazy slugs, welfare queens, and slackers. The top 0.5% are God's chosen few. This is an updated version of Social Darwinism. Ironically it comes from people who reject evolution. Brainwashing works.

[Ricardo Valentin]

08:59 AM on 01/20/2011

It is and odd and strange irony that probably a significant portion of the same people that are now staunchly republican will end up poor in their old age due to the policies of the people they helped elect.

[SuperKK]

08:56 PM on 01/20/2011

I call them economic Jihadists; destroying themselves for a demented ideology.

[myviewsofnow]

05:20 PM on 02/06/2011

....My 401K went to support myself during cancer surgery...No choice in the matter. Bad times is a great economic equalizer for many. I used to mock people losing all like me, and here I am.

[CollectiveId]

08:16 AM on 01/20/2011

We value money and greed. We do not care what happens to others but ourselves. Greed will be the downfall of the great USA.

[SuperKK]

08:56 PM on 01/20/2011

That was the true legacy of Reagan.

[teabagflush]

07:25 AM on 01/20/2011

Look at who these boomers voted for in 2000 and 2004. They did it to themselves. No sympathy is coming from me. Clinton made them secure financially, then Dubya and his crinies took their security away. Life goes on.

[UnknownSolider]

07:26 AM on 01/20/2011

they first voted Reagan, and that started the whole mess

[chronic5]

09:05 AM on 01/20/2011

It would be just as easy to say that you no matter your age you voted for GWB if you were at voting age then, wouldn't it? Demonizing the boomers and pitting generation against generation falls right into the Republican play book. Don't forget the "greatest generation" either as they were still voting then and accounted for much more of the Republican vote than the boomers.

[batmancw]

09:50 AM on 01/20/2011

IMO, BOTH sides LOVE to see us engaging in class or generational "warfare" rather than forcing THEM to be accountable to their constituents.

[MrUnlimited]

04:23 AM on 01/21/2011

"It would be just as easy to say that you no matter your age you voted for GWB if you were at voting age then, wouldn't it?"

Well, not really...younger adults (during Bush v. Gore and Bush v. Kerry, Gen-Xers and Millennials were the young adults) as a group voted against Bush. I'm not sure if the same can be said for Baby Boomers. Still, the point of the rest of your post seems reasonable.

[local21]

07:14 AM on 01/20/2011

I would like to invest my money in what is good for our country instead of what is good for the global shareholder, any ideas ?

[UnknownSolider]

07:25 AM on 01/20/2011

yes

Where ever its possible buy from a mom and pop store do not be price sensitive with all your purchases.

For Example: I buy Corporate stuff from Target, meaning things like soap, corporate junk food like Nabisco, Kraft etc........ as for my real grocery shopping like fruits, vegetables, meats etc I buy those from a local supermarket....... its more expensive but not buy much, maybe 2 packs of blueberries are 5 dollars and at Target it maybe 3 for 5.....

Open a savings account with a local bank, you can keep your checking account with the Large Corporate Bank because of the debit card stuff and ATM fees

When you dine out skip past the Olive Garden and Applebees and go to a owner operated full service restaurant, you'd be amazed at how much better you'd be treated as a regular customer at one of these places as opposed to the big Chain place........

Now of these things will fix things right away, but over a period of time it will help balance out the market place

[Pearldiver]

11:36 AM on 01/20/2011

Couldn't you just quit shopping at Walmart altogether? Ditch the junk food and you wont' need so much Medicare!

[Oldsop]

08:57 AM on 01/20/2011

that's easy: buy American cars; buy nothing that says -made in China-;

[sandiegoconservative]

02:03 AM on 01/20/2011

Put away for your retirement by investing, contributing the max to your 401k, and invest in land or property. Eventually the government will punish the people that planned ahead by arguing that years of frugality resulted in an unfair advantage over others. Your social security benefits will be picked apart and given to someone else. You might as well protect yourself as much as possible.

[msbeal]

01:03 AM on 01/20/2011

A lot of late boomers deserve everything they get or in this case don't get. You can only go for immediate gratification so long before it catches up to you.

Borrowing untold amounts of money they bought the big monstrous five bedroom houses, European vacations, four new cars in the driveway and remained blissfully ignorant and silent about massive government expenditures for wars.

These are the very same people who looked down their noses at we who lived simple lives and would never ever consider riding a bus to work.

Sure there are exceptions and sad exceptions to boot, i.e. medical expenses, but overall, sympathy? NO WAY.

They voted for and supported Republicanism all their lives hoping to own that steel mill someday but whoaaa, they didn’t make it, did they? Duh.

[saint bernard mom]

01:30 AM on 01/20/2011

"they bought the big monstrous five bedroom houses"
 
You know boomers in their 50's & 60's who are buying 5 bedroom homes?
 
I don't know anyone who hasn't DOWNSIZED since the kids are grown and gone. Most boomers have kids that are 30-40+. And I don't know anyone who wants to maintain a 5 bedroom home with everybody gone. Waaaay too much homework!
 
 

[msbeal]

01:58 AM on 01/20/2011

I don't intend to account for all examples.

They may have downsized but with a lot of them you'll find them snowed under with their consumer debt.

I have a relative that's 62 and in hock up to her eyeballs. Hard core Republican who bought the whole retail American dream right down the line.

It just gets me angry when people mismanage their money so badly. By god, I taught my kid better.

[Olderandwiser55]

02:21 AM on 01/20/2011

I am a boomer but also worked in some financial advisory firms and I saw an unbelievable amount of people that bought newer, bigger houses in their 50s. The statistics are terrible, the boomers didn't save and will again be the cat food generation. Or they will learn to live on less but many just aren't. I was astounded-they wanted the bad advice and quick fixes and "sure, you'll always make more money and get 20% returns".

Sadly, many in their 50s making very good incomes had hardly saved.