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Tuesday, September 18, 2012

What Makes the Boomers the Boomers


I found an interesting article in a magazine called - Governing.

It was pretty general stuff but it covered a lot of factors that define the world that Boomers in the US inhabit and describes how that is likely to change.

I was particularly interested in the author's view about the financial status of Boomers. I quote.

There’s a persistent myth that baby boomers have a lot of wealth. They don’t. 

Even before the Great Recession, boomers weren’t very well positioned for retirement. In 2007, just before the housing bubble burst, older households (between 55 and 64) had a median net worth of $266,000, according to data from the Federal Reserve. 

As David Callahan, an author on wealth and a senior fellow at the liberal Demos policy organization, wrote in June, “That figure included everything -- home equity, savings, 401(k)s, etc. -- and is hardly the kind of money people need to get through their golden years. By 2010, though, the nest eggs of Americans approaching retirement had shrunk dramatically, falling to $179,400 -- a 33 percent drop.”

These numbers give you food for thought. The situation in the UK is no different - may even be a bit worse. Dick Stroud

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