Poor Baby (Boomers that is)

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Wednesday, Feb 9, 2011 •  Posted by


In my last few webinars I have talked about the plight of the younger Boomers/older Gen Xers (those aged 45-54). The most recent data is quite dramatic in showing how difficult their current situation is. Here is the rest of the data that I was unable to present because of time limitations:

I intend to permanently decrease the amount of unnecessary stuff I buy:  All Agree –  44%; Aged 45-54 Agree:  51%

I have only been spending money on necessities for at least a year:  All Agree - 33%; Aged 45-54 Agree - 52%

I intend to permanently decrease my use of credit cards:  All Agree – 28%;  Aged 45-54 Agree – 38%

I intend to permanently increase the amount of money I save:  All Agree - 28%;  Aged 45-54 Agree – 44%

I worry more about my retirement now more than I ever have:  All Agree - 27%;  Aged 45-54 Agree – 39%

I don’t think I will ever be able to retire   All Agree -20%;  Aged 45-54 Agree – 31%

I will probably only have social security for income in my retirement:  All Agree -19%; Aged 45-54 Agree – 29

I feel that I have too much credit card debt:   All Agree -19%; Aged 45-54 Agree – 23%

I feel happy less often than I did before the recession began: All Agree – 26%; Aged 45-54 Agree – 29%

The good news is that even though they are paying down debt and are more worried about their retirement, they are not significantly less happy than other age groups (see the last row “I feel happy less often than I did before the recession began”).
This could be because they are still employed. According to the Bureau of Labor Statistics there is a huge difference between the unemployment rates of different age groups.  Below are the unemployment rates by age group as of December 2010:

20 – 24 – 15.3%

25-34 – 10.1%

35-44 – 7.8%

45-54 – 7.5%

55+ – 6.9%

This is traditionally the group at the peak of their earning power so obviously there is something else going on—such as too much debt, children in college to pay for, and other demands on their income. The good news is that once they are feeling more comfortable with their economic situation, they could loosen up their spending somewhat, which is good news for the economy.