Sluggish Economy Prompts Affluent Baby Boomers to Alter Their Budgets
Fear of a long recession has hit the affluent baby boomer segment of the population, prompting many of them to downsize their lifestyles and tighten their belts, a new survey finds.
A quarter of affluent 60-year-olds are cutting back by contributing less to charity, canceling vacations, reducing retirement saving or postponing retirement altogether, according to a national survey conducted by Bell Investment Advisors in Oakland, Calif.
The annual survey also finds that more than a quarter of all respondents have either lost jobs in the last 12 months or know someone 60 or over who has. Such adverse conditions are causing many (21 percent) to cancel or postpone vacations, and almost as many (18 percent) to contribute less to retirement savings.
The financial woes have also lead to mental anguish, the survey finds, as 30 percent of those polled say they feel more stressed than they did six months ago
The short-term effects of less spending on the economy will be felt in the months to come, but the long-term effect of this trend is profound: 11 percent report that they will postpone retirement altogether.
To that end, Bell Investment Advisors is cautioning people not to panic because of current market conditions and the economy. "The current economic slowdown is not a cause for panic among those with a clear retirement plan and sound investment strategy," says Jim Bell, founder and president of Bell Investment Advisors.
"The key to navigating the slowdown is to remain rational and stick to a plan, rather than letting emotions steer you off track," says Bell. "An economic slowdown is measured in months, in contrast with retirement, which will last several decades for most boomers."
– By Ed Coury, senior editor and Midwest bureau chief for the Wall Street Journal Radio Network, Dow Jones & Co., and a reporter for WWJ Newsradio 950
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Fear of a long recession has hit the affluent baby boomer segment of the population, prompting many of them to downsize their lifestyles and tighten their belts, a new survey finds.
