SEARCH

Entries in Baby Boomers (6)

Friday
Aug102012

Seniors Have Both High Hopes and Major Concerns About the Future

Digital Vision/Thinkstock(NEW YORK) -- Despite tough economic times, at least one group of Americans is bullish about their future. They’re the baby boomers born between 1946 and 1964.

In a poll conducted of 2,250 people ages 60 and older by the National Council on Aging, UnitedHealthcare and USA Today, 75 percent of baby boomers believe life will continue to get better, due in large part to people working longer and advancements in healthcare.

However, their optimism is also tempered by some realism about the way the economy has stagnated, with a third of this group worried that they won’t be able to pay for long-term care, while 20 percent say that a major financial downturn would seriously affect their fiscal situation.

Just over seven in ten seniors earning under $30,000 annually, which is considered low income, admit to a lingering health problem and that they’re less likely to exercise than their more financially secure counterparts.

Meanwhile, about a fifth of seniors over the age of 65 are still working either full- or part-time, some because they want to, other because they have to in order to make ends meet.

“Aging in place” is another goal of most seniors -- that is, living in their own homes. Most people in their 60s say that it’s feasible to live independently, although less than half of folks in their 70s see that as a realistic possibility.

There’s another major concern brought up by the respondents in the survey -- that is, the availability of resources and services in their communities, with more than a fourth of people in their 60s worried that a lack of these services will make it more difficult to “age in place.”

Copyright 2012 ABC News Radio

Wednesday
Aug082012

Seniors Have Both High Hopes and Major Concerns About the Future

Comstock/Thinkstock(NEW YORK) -- Despite tough economic times, at least one group of Americans is bullish about their future.  They’re the baby boomers born between 1946 and 1964.

In a poll conducted of 2,250 people ages 60 and older by the National Council on Aging, UnitedHealthcare and USA Today, 75 percent of baby boomers believe life will continue to get better, due in large part to people working longer and advancements in healthcare.

However, their optimism is also tempered by some realism about the way the economy has stagnated, with a third of this group worried that they won’t be able to pay for long-term care, while 20 percent say that a major financial downturn would seriously affect their fiscal situation.

Just over seven in ten seniors earning under $30,000 annually, which is considered low income, admit to a lingering health problem and that they’re less likely to exercise than their more financially secure counterparts.

Meanwhile, about a fifth of seniors over the age of 65 are still working either full- or part-time -- some because they want to, others because they have to in order to make ends meet.

“Aging in place” is another goal of most seniors -- that is, living in their own homes.  Most people in their 60s say that it’s feasible to live independently, although less than half of folks in their 70s see that as a realistic possibility.

There’s another major concern brought up by the respondents in the survey: the availability of resources and services in their communities.  More than a fourth of people in their 60s are worried that a lack of these services will make it more difficult to “age in place.”

Copyright 2012 ABC News Radio

Wednesday
Jul182012

Study: Unemployed Baby Boomers Dipping into Retirement Savings

Jupiterimages/Thinkstock(NEW YORK) -- Millions of aging baby boomers have cracked into their nest eggs, raided their 401(k)s and other retirement funds because they need the money now.

A new study from the non-profit Transamerica Center for Retirement Studies finds that only one in 10 displaced workers is very confident about the ability to retire comfortably.  The findings are based on a Harris Interactive poll of more than 620 unemployed or underemployed people.

Catherine Collinson, president of the Transamerica Center says, “Many have raided retirement accounts to make ends meet -- and it will be difficult for them to overcome these savings setbacks once they regain employment.”

Copyright 2012 ABC News Radio

Monday
Jun182012

Half of Baby Boomers to Leave Inheritance to Kids

Nick M Do/Getty Images(NEW YORK) -- Trillions of dollars in wealth is expected to be transferred from the generation of Baby Boomers who die in the next half-century, but their offspring shouldn’t be expecting a cash windfall.

Only 55 percent of Baby Boomers think it is important to leave a financial inheritance to their children, according to the U.S. Trust Insights on Wealth and Worth annual study.

U.S. Trust commissioned an independent, national survey of 642 high net worth adults, who were not clients, with at least $3 million in investable assets. The study, released on Monday, includes findings on a number of subjects, including elder care planning, estate planning, and the wealthy survey respondents’ thoughts about charitable giving.

Only 44 percent of those surveyed think the wealthy have a responsibility to “pass their wealth to the next generation.” Of Baby Boomers surveyed, 31 percent don’t think it is important to leave a financial inheritance and said they would rather leave money to charity than to their children.

The study defined the Baby Boom generation as those aged 47 to 66.

“Between now and 2050, there are going to be trillions of dollars of wealth that will transfer to children and other heirs and what’s interesting is high net worth parents worry now that their children are not prepared to inherit wealth that will be theirs one day,” said Keith Banks, president of U.S. Trusts.

The top reason for not wanting to leave an inheritance are the beliefs that each generation should earn its own wealth (57 percent).  Following closely behind that, 54 percent believe it is more important to invest in children’s success while they are growing up.

Copyright 2012 ABC News Radio

Tuesday
Mar062012

Single Retirees Face High Financial Hurdles, Report Finds

Jupiterimages/Thinkstock(TORONTO) -- A new study sees tough times ahead for baby boomers who retire single, or who become single in retirement.  The report, "Single in Retirement," released on Tuesday by the BMO Retirement Institute, finds singles face "a unique set of financial, emotional and planning challenges" in retirement.  And their ranks are growing quickly.

Among people age 65 or older, 47 percent of women and 18 percent of men now live alone, according to U.S. Census data -- an increase since 1970 of 96 percent for women and 22 percent for men.

The BMO study says that while solo retirement is a growing trend, not all singles retire equally.  It draws a distinction between what it calls "Ever Singles" -- people who have never married or who have spent a significant portion of their lives unmarried -- and "Suddenly Singles" -- people who have singleness thrust upon them by a divorce or the death of a spouse.

"It's not the woman who's been single all her life who's most at risk," said study director Tina Di Vito.  "She's probably under-saving for her retirement; but it's the married person who's been relying on their partner to handle all the financial matters who's at greater risk.  Suddenly they're on their own and fully responsible for their own financial matters."

Divorce rates for soon-to-retire baby boomers have surged over the past 20 years, even as those for other age groups have stabilized, according to the BMO report.

Di Vito said one possible reason baby boomers are more divorce-prone is a phenomenon psychologists call "boomer entitlement," a tendency for mature individuals to seek freedom and self-fulfillment after years of having accepted conventional roles dictated by society.

Di Vito said it is often the female who leaves the marriage first.

"More and more women Boomers have their own assets and pensions as they enter retirement," she said.  "They may already have been living independent lives within their marriages.  One day they look at their husband and ask themselves: Who is this person?  Women often are the ones to initiate older divorces.  That's the trend."

Yet women are later apt to discover they have failed to prepare sufficiently for retirement's demands.

A 2010 Employee Benefit Research study found that single baby boomer men, compared to their married counterparts, had a 19 to 34 percent higher 'savings deficit' for their retirement.  But the same study found the deficit for unmarried women to be at least double that of married women.

Di Vito said that once a senior suffers a drop in income, statistics show it's very difficult for them to climb back.

Copyright 2012 ABC News Radio

Wednesday
Jul202011

Retirement Revolution: Saving for Your Dreams

Stockbyte/Thinkstock(NEW YORK) -- Travel, time with the family and volunteer work are some of the traditional perks of retirement, but there's another very modern picture, and that includes work.

Eighty percent of baby boomers say that when retirement day comes, they'll still be on the job -- in some cases, because they want to be; in others, because they have to be.

"I won't ever stop working," said Grant Aufderhar, 62.

Many companies now offer bridge jobs, full- or part-time work designed to ease the move into retirement.

ABC News polled dozens of financial experts and boiled down retirement advice to three crucial tips that apply to everyone, no matter what a person's financial state is.

1. Make a Plan

"[People] wing it when it comes to either their day-to-day investments and even retirement. If you are a couple looking to retire together, make sure you sit down and talk about it together," said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co.

2. Follow the Four-Percent Rule

Calculate what you think you need for one year of retirement, multiply that by 25 and withdraw four percent of the total each year to live on.

3. Don't Take Social Security Too Soon

Seventy-five percent of baby boomers claim Social Security before they turn 65, even though the math does not work in their favor. If you are 62 years old earning $60,000 a year, you'd get $1,126 a month from Social Security, but if you wait until you are 70 you'd receive $2,123 a month.

Steve Dubner, co-author of Freakonomics and Superfreakonomics, says waiting can be hard on the human psyche.

"If you ask children would you like one marshmallow now or two marshmallows in 10 minutes, 70 percent of the children eat the marshmallow now," he said. "If I say to you would you like $1 today or $3 a year from now, most people say I want the dollar today."

So what does it all add up to once you throw in tough economic times and a Congress debating cuts in Medicare and Medicaid? Keep working, something Aufderhar is doing happily, thanks largely to another huge trend: companies offering bridge jobs to baby boomers.

Copyright 2011 ABC News Radio







ABC News Radio