Skip to comments.Another Threat to Economy: Boomers Cutting Back
Posted on 08/16/2010 7:18:41 AM PDT by Publius804
America's baby boomersthose born between 1946 and 1964face a problem that could weigh on the economy for years to come: The longer it takes for the economy to recover, the less money they'll have to spend in retirement.
Policy makers have long worried that Americans aren't saving enough for old age. And lately, current and prospective retirees have been hit on many fronts at once: They have less money, they earn less on what they have, their houses aren't rising in value and the prospect of working longer to make up the shortfall has dimmed significantly in a lousy job market.
"We will have to learn to make do with a lot less in material things," says Gary Snodgrass, a 63-year-old health-care consultant in Placerville, Calif. The financial crisis, he says, slashed his retirement savings 40% and the value of his house by about half.
Banks, home buyers and bond issuers are all benefiting as the U.S. Federal Reserve holds short-term interest rates near zero to support a recovery. But for many of the 36 million Americans who will turn 65 over the next decadeand even for the 45 million who have another decade to go the resulting low bond yields, combined with a volatile stock market, are making a dire retirement picture look even worse.
Low yields present retirees with a difficult choice: Accept the lower income offered by safer bonds, or take the risk of staying in the stock market. Either way, their predicament could put a long-term damper on the consumer spending that typically drives U.S. growth.
(Excerpt) Read more at online.wsj.com ...
They are not cutting back on health care premiums and health care costs.
Already accomplished as part of going Galt in a virtual manner.
The biggest group of children from one generation, the unappreciated cash cow is now aging.
Guess the Government can't kick the can down the road any longer. The old gray Boomer Generation has been used up and there is nothing left for them but Obamacare!
Wait till the second boomer stock market panic takes place. This month or next....
The war against totalitarians should be waged on all levels including philosophical, political, social and financial before you have to get to physical.
Defund totalitarians and their collectives.
Very interesting. I think a lot of Baby Boomers are going to find that the whole promise of “retirement” was nothing more than a con job. The idea that someone could retire at 60-65 and then go on living for another 25-30 years without doing anything productive was never sustainable.
>> They are not cutting back on health care premiums and health care costs.
Ain’t THAT the truth. :-(
Hell yes. With my job suddenly at risk with the regime wanting to disestablish JFCOM, damned right THIS baby-boomer is cutting back.
Since I have no political power myself, all I can do is pray that God gives them what they deserve. God knows who did it. God can bring them to their knees.
Of course we're supposed to forgive. Yeah, I can do that, but I also ask God to dispense his justice and look after those who call on his name for help and mercy.
If we can't make it paycheck to paycheck then, noooo we can't save for old age.
And lately, current and prospective retirees have been hit on many fronts at once: They have less money,
they earn less on what they have
their houses aren't rising in value
False. Housing prices are still skyrocketing in my neck of the woods so property taxes are also skyrocketing causing even more financial problems.
and the prospect of working longer to make up the shortfall has dimmed significantly in a lousy job market.
True. On that progressing unemployment map, this county is now at the dark purple color. There are a few jobs but they are part time, minimum wage, and no benefits.
Except the soup lines won't be as orderly as last time around
Yeah there aren’t enough of us dead yet. Zip that wallet.
A threat to a totalitarian economy is a gain for free people.
No wonder they wanted death panels in “healthcare”...
I agree. And 20+ years of retirement, paid for by "somebody," is only a small part. The entire social-welfare-state construct - handouts for the idle, medical care, schooling - is going to prove to be a failed experiment within the next 50 years.
>> The idea that someone could retire at 60-65 and then go on living for another 25-30 years without doing anything productive was never sustainable.
Right you are.
I feel blessed that I like my work. I plan to work until I can’t anymore.
I advise that everyone spends less than 50% of their take home pay. Save the rest. First it starves our evil government of tax revenue, as an added bonus, you will find that all of the crap that you used to spend money on didn’t make you happy at all.
The Fed is basically stealing from savers and rewarding borrowers.