The definition of retirement is being rewritten on a daily basis based upon the current markets and is bound to continue to evolve in the short term. With depressed housing prices and a wildly fluctuating stock market, seniors and boomers are reconsidering their retirement choices from their housing needs to the amount of medication that they are taking. Back in May, AARP released an economic survey that shows the differences between the baby generation and their parents. Not surprisingly, baby boomers are feeling a greater impact from the economic downturn and are more likely to postpone their retirement plans. Additionally, the survey showed that almost 25% of people ages 45-64 are prematurely taking money out of their 401(k)s and other investments. Younger boomers (ages 45-54), in particular, are doing things like postponing paying bills (27%) and even cutting back on medications (17%). The Wall Street Journal posted an article on the same topic of retirement choices that paints an even bleaker picture of the consequences of the recent market turmoil, click here for the article.
The parents of baby boomers, who are more likely dependent on fixed incomes, have less room to make spending changes. Almost six-out-of-ten (59%) of people 65+ in this group are having a harder time paying for food, gas and medicine, and more than a third (34%) of all retirees have had to help a child pay bills in the last year. More than one-in-ten (11%) of retirees have had to seek help from loved ones or charity organizations in the last year. An interesting perspective is that many senior have lived longer and may have experienced harder times (like now) and might be more willing to make sacrifices than their baby boomer children.
For more information visit the AARP here: http://www.aarp.org/research/economy/trends/economy_survey.html